The Steemit Crypto Academy Week 3 | Homework by @gbenga | All You Need to Know About Bitcoin Network |Segwit Bitcoin Network or Legacy Bitcoin Network, which do you prefer and why? |

in hive-108451 •  4 years ago 

Hello everyone I hope you all are good. Its my first lecture I would like to thanks to this academy and our professor Mr. @gbenga who made us to learn about new technologies in detail. He is doing very good work he explained about bitcoin very well and give us a task to complete by giving us task we can learn easily.

Segwit Bitcoin Network or Legacy Bitcoin Network, which do you prefer and why?

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I would prefer Segwit bitcoin network because its new technology and very efficient . Segwit improves bitcoin and fixes bugs. Segwit increases the size of bitcoin network. Segwit fixes the error in bitcoin protocol that allows users to temper with identity during transactions. Before segwit the transaction ID of transaction could have been changed by manipulating the unlocking code of transaction. After sign digital transaction it is sent to bitcoin cryptographic hash function which results a new transaction ID.

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If one character is changed in the digital signature it refers to a completely new transaction ID. Segwit move signature to the end of the transaction so the transaction ID is created from every thing but not change in signature. Segwit will allow bitcoin to process millions of transaction per second. The benefits of segwit is it increases the transaction quantity and reduces transaction fees. Faster transaction means numerous transactions per block.
Segregate witness " Segregate means Separate and Witness means Transaction Signature" so segregate witness means
Separate Transaction Signature.

Segwit is a soft fork a and is backward compatible means if someone wants to transfer bitcoin from legacy to segwit so he/she can easily transfer bitcoins from legacy to segwit because segwit is backward compatible. The benefit of separating signature is that it reduces the size of transaction data so it can store needed data in blocks. It allows each block to store more data per block. Its means it can process more transactions per blocks so the sender have to pay lower transaction of fees.

What is Soft Fork?

Soft fork is used to activate Segwit through UASF ( User Activated Soft Fork).It is a mechanism in which the activation time of blockchain soft fork is enforced by the full nodes. Soft forks are triggered by miners who have a control over network. Soft fork take this control from miners and give it to nodes. Soft fork do not break blockchain network but make some changes for the better improvement. It do not violate rules of existing protocols. There is a queation how and when the simple changes should be adopted usually miners allow soft fork to do these changes and sets its activation time.

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How SegWit works?

Segwit works when soft fork is activated. every block contain transaction data eg. Public key, amount of BTC, senders public key, digital signature and script. Digital signatures allocate more spaces so the signature is segregated from transaction and moved to validation process so the free space is used for more transaction that make transaction faster.
Segwit is a way that segregates signature from transaction.

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Bitcoins max block size is 1MB once the block data size is reached to 1MB block was unable to accept more transaction data and it had to wait in mempool.

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Before Segwit the maximum size of block was 1MB after using segwit the block size is increased from 1MB to 4MB.
Segwit is base of lightning network by excluding the possible transaction data (Witness) from block a secure channel is created that allows bitcoin for millions of transactions per second (tps).

Image Sources:

https://www.buybitcoinworldwide.com/segwit/
https://www.buybitcoinworldwide.com/uasf/

#gbenga #steemitcrypto

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Hello friend, thanks for participating in the Assignment and being a part of the class. You gave a very good pictographic illustration. Please when next you are using part of another authors article you should reference them.

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