Segwit Reading Assignment

Increase block size from 1mb -> 2mb. This is what BCH did as a hard fork.

Transaction Malleability

Second Layer solutions like Lightning Network were difficult to make happen due to the transaction malleability issue. Since Segwit resolves this issue, second layer solutions are possible.

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Nope, this is a soft fork where the blockchain and network could continue despite the change.

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  1. To increase the block size limit.

  2. It also solved the problem of Transaction Malleability and second layer deployment such as lightning for faster processing of TXs.

  3. SegWit enables second layer solution such as lightning.

  4. No, it was soft fork so it was a contraction basically.

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  1. Alternative was to increase the block size.
  2. It solved the malleability issue.
  3. By solving the malleability issue segwit allowed for the development of the lightening network.
  4. No, they can (soft) fork.
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  1. What was a proposed alternative to Segwit?

Bitcoin Cash (BCH) was a hard fork instigated by Roger Ver who thought that Segwit was merely pushing the problem further away but not solving it. He created BCH in order to increase the block sizes, rather than just streamlining them or removing information.

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

Segwit allows for smart contracts and layer 2 protocols to be built on the Bitcoin network.

  1. How is Segwit and the Lightning network connected?

Segwit supports Layer 2 protocols. and this is where the lightning network was built.

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

Not forced, industry adoption has been relatively slow but as adoption increases the network should see efficiency improving dramatically.

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  1. Increase the block size
  2. It solves the malleability issue
  3. Lightning network becames possible with segwit
  4. No, they aren’t
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1 Increase block size
2 Tx Malleability
3 Segwit allow the development of second layer protocols, like the Lightning network
4 No, because it was a softfork.

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  1. To increase tx size

  2. It solved malleability and provided new abilities for top-layer network.

  3. Segwit allowed the top layer network called lightning to allow small frequent transactions off-chain.

  4. In the long run yes but it will be done so over time

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  1. What was a proposed alternative to Segwit?

    The alternative solution to Segwit was to increase the block size from 1MB to 2MB.

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

    SegWit fixed transaction malleability by removing the signature information and stored it outside the base transaction block.

  3. How is Segwit and the Lightning network connected?

    The Lightning offers instant transactions on it’s second layer solution.

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

    No, wallets offer support for SegWit and without.

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  • What was a proposed alternative to Segwit? Increasing block size

  • What did Segwit solve more than just the scaling issue? Transaction malleability, which stores the signatures outside the base transaction block.

  • How is Segwit and the Lightning network connected? Segwit allows for second layer protocols such as the Lightning network.

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

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  1. The alternative proposal to Segwit was to increase the block size from 1MB to 2MB. However this would only be a temporary solution as the blocks would keep increasing in size.

  2. Segwit also sovled the issue of transaction malleability (someone changing the transaction id).

  3. Segwit and the Lightning network are connected by the development of a second layer protocol.

  4. People who use wallets and other services to store Bitcoin are not forced into using Segwit, old addresses and transactions can also be used.

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  1. increase block size
  2. transaction malleability
  3. segwit enables second layer solutions such as lightening
  4. no
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  1. What was a proposed alternative to Segwit?
    Increasing the block size. Bitcoin Cash chose to do this with a hard fork instead of implementing Segwit.

  2. What did Segwit solve more than just the scaling issue?
    Transaction malleability - the ability to change the tx ID & hash; which could result in theft.

  3. How is Segwit and the Lightning network connected?
    The lightning network is a second layer protocol built on top of bitcoin’s blockchain, made possible by segwit.

  4. Are people, wallets and other services forced to use Segwit?
    No one is forced to use it because the update was made with a soft fork. However, as segwit adoption increases, miner fees should decrease and transaction volume should increase; causing incentives to use it.

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  1. What was a proposed alternative to Segwit?
    TO increase the block size which lead to bitcoincash
  2. What did Segwit solve more than just the scaling issue?
    transaction malleability and lower fees.
  3. How is Segwit and the Lightning network connected?
    SegWit supports the second layer solution which is the lightning network.
  4. Are people, wallets and other services forced to use Segwit?
    No, it is a soft fork, however, wallets are adding SegWit support.
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  • What was a proposed alternative to Segwit?
    An increased block size as it was thought by some that this was just putting a band aid on the problem.

  • What did Segwit solve more than just the scaling issue?
    It also allowed for better security by enabling the transaction to be signed out of block data.(Tx Malleability) so that the Signature ID of the block could not be altered to affect the where abouts of the transfer on the block chain(Diversion hacking).

  • How is Segwit and the Lightning network connected?
    Segwit allowed protocols to be built onto the bitcoin network (The Lightning Network) and even further increasing the speed of bitcoin by taking small data transactions off the main network, thereby freeing up space for faster transactions.

  • Are people, wallets and other services forced to use Segwit?
    No they are not, there is the alternative to stay on the blockchain and be Bitcoin cash- Which has an increased block size of 4MB. However there are many pros to being on the segwit fork, namely: Decrease block size, application of the lightning network, increased security (due to signature removal)

Don’t trust… Verify!

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Do you want t5o try it from here?

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Still not working not sure why, thanks though mate.

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Maybe this will help :muscle: :sweat_smile:

Last updated: 22 February, 2018

SegWit (short for Segregated Witness) is a protocol upgrade that changes the way data is stored. It was activated on litecoin on May 10, 2017, and on bitcoin on 23 August, 2017.

Developer Pieter Wiulle first presented the idea at the Scaling Bitcoin conference in December 2015.

Many hailed it as a long-awaited solution to bitcoin’s scaling problem. The maximum block size in the main protocol is 1MB, which restricts the number of transactions bitcoin can process to approximately 7 per second. This was going to limit bitcoin’s potential growth, and prevent it from becoming a usable high-volume payment system.

While the upgrade does enable a greater number of transactions in bitcoin’s blocks, SegWit’s initial intention was to fix a bug in the bitcoin code called transaction malleability. This flaw allowed anyone to change small details that modified the transaction id (and the subsequent hash) but not the content. While not a critical problem for bitcoin, it prevented the development of more complex features such as second-layer protocols and smart contracts.

SegWit fixed transaction malleability by removing the signature information (otherwise known as the “witness” information) and storing it outside the base transaction block. With that, signatures and scripts can be changed without affecting the transaction id.

Slimming down

A side benefit that is taking on a much greater importance is that, without the signature information, the transactions weigh much less. This means that more can fit in a block, and bitcoin can process a greater throughput without changing the block size.

SegWit introduced a new concept called “block weight.” This is a mashup of the block size with and without the signature data, and is capped at 4MB, while the block size limit for the base transactions remains at 1MB. This means that the SegWit upgrade is compatible with the previous protocol, and avoids the need for a hard fork.

So, SegWit does not increase the block size limit, but it does enable a greater number of transactions within the 1MB blocks. The 4MB cap includes the segregated witness data, which technically does not form part of the 1MB base transaction block.

Building on top

Another big step forward made possible by SegWit is that it supports the development of second layer protocols, such as the lightning network. The malleability fix made any feature that relied on unconfirmed transactions less risky and easier to design.

The lightning network will further boost bitcoin’s transaction capacity by taking frequent, small transactions off-chain, only settling on the bitcoin blockchain when the users are ready.

SegWit activation also boosted development work on other features such as MAST (which enables more complex bitcoin smart contracts), Schnorr signatures (which would enable another transaction capacity boost) and TumbleBit (an anonymous top-layer network).

Not everyone’s happy

Not everyone in the bitcoin community agrees that SegWit is the solution bitcoin has been waiting for. Some believe that it is a case of “kicking the can down the road,” and at best a temporary fix.

Resistance to SegWit was one of the factors behind the development of bitcoin cash, a fork of the bitcoin network which chose to implement a larger block size limit rather than rely on a new transaction structure.

Where are we?

In spite of the obvious advantages, the rollout of the upgrade is moving slowly. At pixel time, 14% of transactions were using the new format (you can follow the progress here).

The main reason is that many wallets have yet to add SegWit support. Some big names such as Trezor, Ledger, Electrum and Kraken have already done so. Coinbase – the largest wallet provider in terms of number of transactions – is working on it, and expects to implement the upgrade in early 2018. And the wallet attached to bitcoin’s most popular full node implementation, Bitcoin Core, is expected to roll out SegWit in the first quarter of 2018.

With the main bitcoin code also making SegWit-friendly adjustments, this could lead to an uptick in both usage and additional functionality experimentation. Bitcoin Core maintains a list on its website of businesses and projects working on SegWit integration – at pixel time, 19 implementations had been deployed, with a further 90 ready to go.

As more wallets embrace the upgrade, the percentage of transactions that use the SegWit structure will increase, and bitcoin fees should drop as blocks contain a greater number of transactions. Furthermore, the development of lightning and similar second layer protocols should get more of a boost, enhancing bitcoin’s scope and potential. This is unlikely to happen overnight – but the change is an important one, and represents a big step forward.

Authored by: Noelle Acheson; Image of door opening via Shutterstock

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Fantastic! Thanks York.

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1-What was a proposed alternative to Segwit?
To implement a larger block size limit

2-What did Segwit solve more than just the scaling issue?
It solves malleability of the block, what means more security of the network.

3-How is Segwit and the Lightning network connected?
Segwit supports a second layer protocol

4-Are people, wallets and other services forced to use Segwit?
No, since it’s a soft fork. However, it’s being adopted by some big names.

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  1. increasing block size to deal with more transactions
  2. Malleability meant that signatures were not stored on the blocks and thus the transaction ID couldnt be changed, by manipulating the signatures
  3. because signatures are able to be stored off chain by segwit, it can enable second layer protcols like Lightning network, which will make the network run faster
  4. being a soft fork it doesn’t require everyone, however as better technology is developed using segwit the user wanting those technologies will force developers to use it or they wont have customers.
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