Segwit & Segwit Transactions - Discussion

Bitcoin Programming 101
#21

Hi @filip, newbie question: What BTC address is best to use to transfer BTC from an exchange like Crypto . com to a Ledger hardware wallet Nano S?

The Ledger Waller offers two options (in the photo). Thanks a lot in advance.

ledger nano s
ledger nano s1880×647 42.2 KB

#22

Native segwit uses bech32 addresses which are a bit more optimized so you will have lower fees. But I did notice some exchanges don’t support withdrawing to those addresses yet and will give you an error as being invalid. :slight_smile:

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#23

Thanks @Alko89, I have made my first transfer with a minimum amount of 148 euros from Crypro.com to Ledger Nano S to test things. The fee was 19 euros, which seems crazy for such a small amount.

Do you know how long it takes for the transfer to be completed?

Thank you.

#24

Shouldn’t take long, you will get an email when the exchange processes your tx. The fee on exchanges is set up by them so can’t do much there…

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#25

Trying to wrap my head around segwit and its benefits, maybe someone can help clarify?

  • segwit reduces transaction size because the transaction size that needs to be stored is reduced (by storing the signature on the node that has segwit enabled)
  • it doesn’t make the transaction hash smaller, the hash just stays the same and is the reason why its backward compatible, ie nodes that are not segwit enabled can process the transactions
  • segwit enables script versioning, however we’re still at version 0 so far
  • it reduces the risk of hard forks because we can version changes and implement changes in soft forks
  • nodes are able to verify transactions without signatures because those are stored separately, not sure if this makes sense?
  • locking script has same size as it’s the hash that works for P2SH that hashes the P2WPKH
  • it disables transaction malleability as it is not possible to tamper the TXID any longer
  • transaction verification is just as fast, potentially slower because of added calculations performed by the nodes that have segwit enabled
  • node can now query transaction without the signatures

Does this sound right?

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#26

It doesn’t really reduce it it just reduces the size of the tx on the block because the withes was moved outside of it.

True about the hash, but the reason why its compatible with old nodes is due to the transaction in itself still being valid to old nodes its just that they process it in a different way

yep :slight_smile:

Well there can still be other reasons to ho a hard fork in the future.

Segwit enabled nodes still verify signatures, they are just not part of a block but in a separate data structure.

The hash is always the same, but the script itself can be quite complex if someone wants.

correct

I have gotten questions about that but don’t really know the answer. I imagine the difference between the old and new verification is minuscule. I wouldn’t bother about it, except if you want to run a node on GameBoy where every CPU cycle counts :smile:
https://www.youtube.com/watch?v=4ckjr9x214c

You don’t really query txs by signature, you query txs by hash, which is basically their ID.

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#27

Hi everyone!
Taproot was locked-in during the last weekend. Will the course be updated with a new section about Taproot? It seems to be the biggest update in the Bitcoin protocol after SegWit…

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#28

We are discussing it. Taproot doesn’t really change the basic structure of a transaction. It adds new functionality so it might be worth adding a new course for it in the future instead.

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#29

is Taproot included in some course now in 2023?

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