Segwit Reading Assignment

Blockchain and Bitcoin 101
#3854

  1. just increasing the size of each block was another solution proposed to circumvent the block size limit

  2. segwit solved both the scaling issue (block size limit) and a bug known as transaction malleability (in which the transaction could be changed by messing with the scripsig in order to broadcast a rehashed transaction ID --segwit removes the signature from the block, saving space and reducing vulnerability)

  3. the lightning network is a second-layer network (that relies on pooling–?--smaller, unconfirmed transactions so that they don’t clog the network, right?) that runs on top of bitcoin, so if those unconfirmed transactions were still malleable, then it would be less secure; segwit helps it run safely by removing that vulnerability

  4. no one is forced to use segwit … yet? i mean if it’s a soft fork, and they now have >51% adoption (according to https://web.archive.org/web/20210811190220/https://www.buybitcoinworldwide.com/segwit/), then why hasn’t the blockchain using segwit outpaced the original?? …but it led to a hard fork with bitcoin cash, so … not sure what the right answer is here @filip?

1 Like
#3855
  1. What was a proposed alternative to Segwit? Making the block size larger such as Bitcoin cash did.
  2. What did Segwit solve more than just the scaling issue? It resolved the malleability issues by separating the signature and the script so that small changes in the signature and the scipt would not affect the transaction ID. This opened the door to other protocols.
  3. How is Segwit and the Lightning network connected? Segwit allows protocols such as lighting to be supported since the lightning network will take frequent, small transactions off-chain to only settle the bitcoin blockchain when the users are ready.
  4. Are people, wallets and other services forced to use Segwit? No, but it improves the blockchain and supports the development of protocols. Wallets are adding SegWit support gradually.
1 Like
#3856
  1. To implement a larger block size.
  2. Also solved transaction malleability, which prevented people from modifying the transaction id but not the transaction content.
  3. Because SegWit solved the transaction malleability issue, making it less risky and easier to design features reliant on unconfirmed transactions, this led to the creation of second layer protocols like the lightning network.
  4. No - it was a soft fork.
1 Like
#3857

https://bitcoinmagazine.com/technical/the-long-road-to-segwit-how-bitcoins-biggest-protocol-upgrade-became-reality This article will answer your question.

1 Like
#3858

  • What was a proposed alternative to Segwit?
    One alternative was increasing the block size

  • What did Segwit solve more than just the scaling issue?
    It also solved the transaction malleability issue.

  • How is Segwit and the Lightning network connected?
    Segwit allows second layer protocols (like Lightning network) to be built on bitcoin

  • Are people, wallets and other services forced to use Segwit?
    No, it is still compatible with the old protocol. It is a soft fork

1 Like
#3859

interesting… “the intolerant minority” haha
a new question arises: is it possible for an update to be both more permissive AND more restrictive? such that “hard” or “soft” fork wouldn’t accurately describe it?

#3860

  1. What was a proposed alternative to Segwit?
    To increase the block size

  2. What did Segwit solve more than just the scaling issue?
    Txn malleability was removed!

  3. How is Segwit and the Lightning network connected?
    Lighting network is a L2- segwit enabled this

  4. Are people, wallets and other services forced to use Segwit?
    no

1 Like
#3861

The alternative to Segregated Witness (Segwit) was an upgrade of the Block Size from1 MB to 2 MB. By eliminating the Signature form the TXId we both saved space and the TX malleability. The Digital Signature could be change as well, resulting in the change of the TXId therefore making it more convenient for non-ethical uses. Segwit enhances the opportunity of using second layers on top of the Bitcoin Blockchain, due to the reliability on the Unconfirmed TX making them less risky and easier to design. Not everyone is required to used the segwit, but with a majority of people using Segwit, the fees on the BTC Blockchain should drop. Another import outlook would be tha “Segwit” is a Softfork.

1 Like
#3862

Increase block size.

Transaction malleability: removed the signature information,

Segwit and the Lightning network are connected by being a two layer solutions

No (soft fork) still some old nodes. About half of spending transactions today include a SegWit output.

1 Like
#3863

  1. A proposed alternative to Segwit was to increase block size.

  2. Segwit solve more than just the scaling issue by preventing Transaction Malleability ; TX - Manipulation.

  3. Segwit and the Lightning network are connected in the sense it allows for the scalability of Bitcoin.

  4. People, and there associated wallets and, other services will not be forced to use Segwit but will have the option especially if one chooses to transact in BTC as a Soft Fork / Layer 2 Solution, in the future versus the usage of transacting and storing value.

1 Like
#3864
  1. Alternatives proposed to SegWit were ideas such as increasing the block size or increase centralisation.
  2. SegWit also solved tx malleability due to the fact of not including the signature inside of the tx.
  3. SegWit solves Transaction Malleability, thereby enabling the Lightning Network, an overlay network of micropayment channels, hypothetically resolving the scaling problem by enabling virtually unlimited numbers of instant, low-fee transactions to occur “off chain”.
  4. SegWit hasn’t been fully adopted by all Bitcoin network participants because it isn’t mandatory, but also due to different incentives between users in the ecosystem. Despite the benefits of SegWit, not all participants in the Bitcoin network have implemented it.
1 Like
#3865
  1. A proposed alternative to segwit is the block weight, which is a mashup of the block size with and without the signature data, capping at 4MB. However, this still keeps the base transactions at 1MB.
  2. With this new concept of block weight being introduced, this enabled a greater number of transactions with the 1MB blocks. It also allowed for lightning networks, which is a second layer protocol. This benefit allowed unconfirmed transactions be less risky and easier to design.
  3. Segwit and the lightning network is connected because when segwit upgraded, it was also still compatible with the previous protocol. Segwit also supports the development of second layer protocols, which is the lightning network.
  4. Many wallets have yet to add the segwit support. However, there are big wallet names that have already adapted to the segwit upgrade. There’s more wallets that are embracing the upgrade throughout time which is a big step forward in change.
1 Like
#3866

  1. What was a proposed alternative to Segwit?

  2. What did Segwit solve more than just the scaling issue?

  3. How is Segwit and the Lightning network connected?

  4. Are people, wallets and other services forced to use Segwit?

  5. To increase block size.

  6. Segwit solved the transaction malleability, lower fees and allowing second layer solution.

  7. Lightning network is a second layer solution which segwit made possible.

  8. No old transactions and addresses can still be used.

1 Like
#3867
  1. Hard forking and increasing the block size.
  2. It also solved transaction malleability.
  3. Segwit supports the lightning network .
  4. No, use of segwit is optional
1 Like
#3868
  1. What was a proposed alternative to Segwit?
  • Solely Increasing block size.
  1. What did Segwit solve more than just the scaling issue?
  • Transaction malleability, which allowed bad actors the ability to change the transaction id.
  1. How is Segwit and the Lightning network connected?
  • Segwit allows for Lightning network transactions to take place by removing the bug that allowed transaction malleability.
  1. Are people, wallets and other services forced to use Segwit?
  • No they are not.
1 Like
#3869
  1. A increased hard fork to 4MB. Bitcoin cash came out of it.
  2. He fixed malleability problem.
  3. Segit supports Ligtning network.
  4. No , it is still compatilble with old protocol.
1 Like
#3870

  1. an increased block size to 2 MB, which later became Bitcoin Cash.

  2. A bug in bitcoin’s code called transaction malleability

  3. By Segwit fixing the transaction malleability issue, the Lightning Network, which is a second layer protocol, can exist with less risk.

  4. No, since this is a soft fork, only 51% of the hash rate needs to accept the change. The other people who did not agree went towards Bitcoin Cash

1 Like
#3871
  1. Expanding the block size.
  2. Segwit also solved the transaction malleability issue, which resulted in the development of some more complex features such as the lightning network.
  3. Without Segwit the Lightning network would not be possible because of transaction malleability, as features that relied on unconfirmed transactions became less risky.
  4. No, Segwit was a soft fork.
1 Like
#3872

1 - What was a proposed alternative to Segwit?

The alternative proposed to Segwit (Segregated Witness) was to solve the problem of the block size limited to 1MB for Bitcoin. This alternative to Segwit was adopted via a BTC hardfork whose modification in the source code of BTC to generate a new cryptocurrency derived from it, but distinct and was named BTC Cash by its new community. The BTC Cash community were originally the miners of the BTC network who refused to implement the Segwit softfork, because preferring to make a hardfork in order to increase the size of the blocks (2MB originally but 8MB today) and by the same creates a new cryptocurrency from BTC but with a modified source code and thus creating a distinctive Bitcoin blockchain.

2 - What did Segwit solve more than just the scaling issue?

Segwite made it possible to reduce the size of transactions, making it possible to optimize the block validation speed, and therefore transaction speeds, as well as allow a significant reduction in costs. But the major improvement achieved by Segwit is the one made on the malleability of transactions. But first, let’s explain how transactions work before Segwit.

Let’s start by defining what is transaction malleability? Each transaction has a TXid identifier represented by a hexadecimal character string (64 characters) which is called an address in user jargon.

This identifier is the fingerprint of the transaction. It is the result of the hash (calculation) function of the transaction. Transaction which contains an inpout (s), an outpout (s) …). If one modifies only one character of the Txid then this one is found changed.

Malleability here is therefore the possibility of modifying the transaction identifier.

SIGNATURE CRYPTOGRAPHIC FORMATTING ALGORITHM

To do this, it must be understood that each signature is produced by an algorithm generating a random number called EDCA (Elliptical Curve Digital Signatur Algorithm) making it possible to produce the signature. Here malleability translates into being able to change, modify the random number generated by this algorithm. Here only the signatory is able to make his changes so it’s rather harmless, it’s like generating entropy when creating a wallet paper for example.

Let us specify then that in addition to the algorithm generating the signatures, these are accompanied by a script.

INSTRUCTION CONTAINED IN THE SIGNATURE

A Script is a piece of computer code containing a list of programmed instructions to describe how the person who received the BTC transfer can spend them, while giving the possibility to modify the spending parameters such as using one or more addresses for release funds

Scripts are only added to transactions after user validation. The malleability is here, also which allows to unlock the signature via an unlock script called (ScriptSign). You can therefore produce several different scripts for the same transaction before inserting it into a block. So here too we can modify TXid of the transaction, not from the signature algorithm directly, but from its instructions.

What should be remembered is that the script is the signature to make it simpler.

Now these few explanations necessary from my point of view, because having had to do research to better understand one can ask:

What does Segwit change?

It will act on malleability in that the signatures are no longer integrated, added to transactions in the block but outside the block. More precisely, the signature is placed in a data structure outside the block as witnesses separate from the transaction of the block, which makes it possible to make the transaction truly immutable and non-modifiable since it is separate from the signature because it is not linked.

A second identifier (TXid) taking into account the block transaction and the block hor witness saginature is created.

Finally, Segwit integrates a new metric to measure how blocks and transactions impact the network. In other words, we no longer translate in the satoshi / Byte software a quantity of data stored in Bytes but or use a virtual notion called weight to calculate the size of the blocks expressed in WU (Weight Unity).

It is a unit averaging the size of the transaction without the witness + the size of the witness.

3 - How is Segwit and the Lightning network connected?

Segwit also brings a versioning of the scripts, that is to say an improvement of the protocl allowing the implementation of future BIP (Bitcoin Implementation proposal) such as taproot (complete confidential non-turing smart contract, without feedback, without the possibility of making calls from functions as on ethereum) and Schnorr allowing multisignature

4 - Are people, wallets and other services forced to use Segwit?

No people and other services are not obliged to use Segwit, we can use legacy addresses for example. But in 2021, this soft fork is widely implemented and today provides real benefits although not perfect.

1 Like
#3873
  1. Block size increase
  2. Segwit solved two main issues full blocks by decreasing the size of transactions (Also lowering fees and tx propagation) and Malleability issue when someone was able to change some data in the signature after)
  3. Segwit allowed second layer protocol which helped Lightning network to be able to work
  4. Segwit was a soft fork and is widely implemented today
1 Like