Segwit Reading Assignment

[Gry]

1. What was a proposed alternative to Segwit?

Hard fork, changing block size restriction to allow bigger blocks.

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

It solved transaction malleability bug. People could change signature data and change the transaction ID this way. After Segwit, transaction ID was placed outside the transaction block, and it fixed the issue.

3. How is Segwit and the Lightning network connected?

Segwit allows lightning network to work in practise, when smaller more frequent transactions are placed outside the blockchain to allow faster transaction speed.

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

Not forced to.

[motond30]

@filip

• What was a proposed alternative to Segwit?
• What did Segwit solve more than just the scaling issue?
• How is Segwit and the Lightning network connected?
• Are people, wallets and other services forced to use Segwit?

1. Increasing the block size.
2. TX ID Malleability
3. Segwit supports the second layer solution. (Lightning network)
4. No, they are not forced, but Segwit usage is continuing to increase.

[kiwicrypto1]

1. increasing the max capacity of a block to more than 1mB
2. malleabiliy that was happening by the rehashing of the sig. being changed
3. lightning allows for small tx to happen off the block whilst segwit still technically stays whithin 1mB it has a way of circumvening to allow up to 4mB
4. no

[Cryptocle]

1. Extend the size limit of blocks, so they can contain more transactions (including signatures).

2. Segwit allows more transactions per 1MB block, and allows signatures to be stored outside in 4MB blocks. It solved the transaction malleability (where someone could modify a transaction signature, and therefore modify the transaction hash) and therefore increases security of transactions.

3. Lightning network is a second layer network, keeping transactions off-chain until the user is ready. Fixing the transaction malleability make the development of second layer safer.

4. Segwit is the most dominant today but it is still possible to use Legacy network. Most wallets are compatible with both.

[FaronLee]

1. What was a proposed alternative to Segwit?

• At first many people wanted to just increase the block size limit from 1MB to something bigger. There would be disadvantages to this.

2. What did Segwit solve more than just the scaling issue?
   Yes, it also solved the problem of malleability, i.e., someone could change the signature data to make it look as if they hadn’t been paid or whatever. This was a serious security issue with the Bitcoin network.

3. How is Segwit and the Lightning network connected?
   Kind of like the invention of Bitcoin made blockchain technology possible, SegWit made possible any protocols that use unconfirmed transactions. It makes them less risky and easier to design.

4. Are people, wallets and other services forced to use Segwit?
   They are not forced to. One group enlarged the block size, creating Bitcoin Cash.
   But most made the change, probably seeing the advantages.

[Ma1402]

1. increase the block size.

2. It solved the transaction malleability issue.

3. Makes layer two solutions such as Lightning Network.

4. No as it a soft fork.

[miro049]

1. Increasing the block size limit, like BTC Cash did. That was a hard fork.
   2.It also solve the malleability issue and with that allowed more development of the second layer protocols like smart contracts and lightning network.
   3.See 2:
2. No, it was a soft fork.

[Masterplan]

• What was a proposed alternative to Segwit?
  To do a Hard Fork and increase the block size

• What did Segwit solve more than just the scaling issue?
  Full block problem + transaction malleability with a separated part of a digital signature from the original data structure

• How is Segwit and the Lightning network connected?
  With the 2nd layer protocol to boost small transactions

• Are people, wallets and other services forced to use Segwit?
  No

[Talk2coded]

1. block size increase.

2. it solved the issue of transaction malleability. ’

3. segwit made second layer possible.

4. No, old address and transactions can still be used.

[Casperc]

What was a proposed alternative to Segwit?

To only increase the block size

What did Segwit solve more than just the scaling issue?

the transaction malleability fix

How is Segwit and the Lightning network connected?

through second-layer protocols segwit made it possible

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

Segwit is implemented as a soft fork, so you don’t need to upgrade
You also don’t need to upgrade any wallets that connect to your full node; they will continue working as they did before

[DNC]

1. What was a proposed alternative to Segwit?
   Because not all in the bitcoin community accepted the SegWit upgrade as the right solution for bitcoin’s scaling problem, coupled with other factors, the Bitcoin Cash alternative was proposed.
   Bitcoin cash is a bitcoin network fork that was developed to increase the block size limit, and thus, avoid relying on the new transaction structure that SegWit introduced.

2. What did Segwit solve more than just the scaling issue?
   Although the scaling issue (enabling a greater number of transactions in bitcoin’s blocks) was the main concern, SegWit’s initial intention was to fix the transaction malleability bug.
   This flaw allowed anyone to change small details that modified the TX ID (changes in the transaction signature) but NOT the TX content, and thus, prevented the development of more complex features.
   Such features as:

• second-layer protocols (eg. the Lightning network), and
• smart contracts (eg. MAST)
  are now possible as a result of SegWit’s acceptance.
• Another side benefit of SegWit’s implementation is that the transactions now weigh less due to the removal of the signature from the base TX. Because more transactions can fit in a block, bitcoin can process a greater throughput without changing the block size (this means small TX fees and increased speed). Bitcoin can be viewed as a usable high-volume payment system.

3. How is Segwit and the Lightning network connected?
   The Lightning Network is a second layer protocol added to Bitcoin’s blockchain, that allows off-chain transactions (i.e. transactions between parties not on the blockchain network).
   Because SegWit fixed the malleability bug, any feature that relied on unconfirmed transactions became less risky and easier to design. So the SegWit upgrade enabled the development of second-layer protocols like the Lightning network.
   https://cointelegraph.com/bitcoin-for-beginners/what-is-the-lightning-network-in-bitcoin-and-how-does-it-work

4. Are people, wallets and other services forced to use Segwit?
   "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. To understand why requires familiarity with the many roles that people play in the Bitcoin ecosystem and how sometimes the incentives behind them contradict one another.

For example, Bitcoin doesn’t simply “upgrade” — it relies on wallets, exchanges and companies using it to upgrade themselves and push changes to the network accordingly. With no one mandating SegWit adoption, it’s up to engineering teams to nudge their organizations in the right direction, and this doesn’t always turn out as expected.

Billions were already behind Bitcoin by the time SegWit surfaced, so corporate bureaucracy saw only a small fraction of these companies act with any agility. The final decision on whether to “rock the boat” with new software updates and economics or to keep the status quo is in the hands of reluctant executives and not enthusiasts. Another misaligned incentive is that of the miners, who preferred to use AsicBoost firmware that was incompatible with SegWit but allegedly helped them to verify transactions [up to 20% faster]"
https://cointelegraph.com/explained/segwit-explained

[bboothe]

1. Increasing the block size from 1mB to 2mB

2. Solved the transaction malleability issue as well by removing the witness from the block. Managed separately.

3. Lightning network is supported by SegWit especially after the malleability fix.

4. No but people they may choose to as it is beneficial in terms of the fact that blocks can hold a greater the number of transactions, thus the Bitcoin fees should drop.

[Kerok]

1. What was a proposed alternative to Segwit?
Increasing the block size, aka Bitcoin Cash.
2. What did Segwit solve more than just the scaling issue?
Transaction Malleability, a bug where changing signatures could change the hash of a block and be used to trick people into believing that their transactions were not confirmed when they in fact were.
3. How is Segwit and the Lightning network connected?
The Lightning Network relies on unconfirmed transactions, the malleability fix made these second layer protocols less risky.
4. Are people, wallets and other services forced to use Segwit?
No, Segwit is not a forced change. Howerver, the higher throughput of transactions has made it a popular upgrade.

[Kerux_api]

1. Increment of Block size limit.
2. Segwit also solved transaction malleability.
3. SegWit and lightening network both boss bitcoin transaction capacity.
4. No but if majority implements segwit then it’s okay.

[Kerux_api]

Hello sir, beautiful mind map you use, please can I have access to your notes please

[JoshuaO]

1. To increase the size of the blocks to 2mb

2. The transaction malleability problem.

3. Segwit allows the lightning network to be possible, by making unconfirmed transactions less risky.

4. Segwit is a soft fork, so if a majority of nodes update to it the minority will be forced to follow suit, or create their own hard fork like bitcoin cash did.

[EtienneW]

@filip

What was a proposed alternative to Segwit?

An alternative to Segwit was an increase in the block size to help aid in the full block solution. This lead to the creation of the Bitcoin Cash fork.

@filip

What did Segwit solve more than just the scaling issue?

They achieved a malleability fix that also made any features that relied on unconfirmed transactions less risky and easier to design

[quote=“filip, post:1, topic:8408”]
How is Segwit and the Lightning network connected?
Lightning Network boosts Bitcoin transaction capabilities by taking frequently small transactions off-chain and only settling in on the bitcoin blockchain when users are ready

@filip

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

Nope, it was a soft fork

[deejay_academic]

Answer 1 - Increasing of Block size

Answer 2 - It also solved Transaction Malleability

Answer 3 - Reduction ion Transaction time, increased number of transaction per block and hence reduction in transaction fees

Answer 4 - No

[Clozy]

1- increasing the block size beyond 1mB

2- It removed the possiblility for users to edit a transaction signature. With the ID malubility removed second layer solutions can be created

3- Without the Segwit upgrade (In particular the removal of transaction signatures from the base layer of a transaction) Second layer solutions like the Lightening network would not have been possible.

4- No, the upgrade didnt change any of the core rules of the Bitcoin code, so no hard fork was needed even though not all miners agreed with the changes.

[CryptoUsic]

1. What was a proposed alternative to Segwit?
   Increasing the block size to 2mb.
2. What did Segwit solve more than just the scaling issue?
   It solved transaction malleability - which means that you can’t change TX id no more.
3. How is Segwit and the Lightning network connected?
   Lighting is a second layer network, it keeps transactions off chain until ready.
4. Are people, wallets and other services forced to use Segwit?
   No