Segregated Witness [SegWit]

Segwit can be defined as a segregated witness and it is a bitcoin protocol and its main objective is to help improve and increase transaction speed in the blockchain network. The weight of transactions is being reduced due to the segregation of transactions diving into two sections. Segwits deals also with the removal of data signatures from a bitcoin transaction by which the size limit is being increased.

Segregated Witness network protocol upgrades increase the number of transactions that often happen in a particular block. It also serves as an improvement that reduces the size needed for a transaction to be stored in a particular blockchain and this happens when certain signatures are removed and separated from the blockchain. Segwit was proposed in the year 2015 by Pieter Wulie who then find a way to provide solutions to Segwits problem. Digital signatures take up to 65% mostly in a transaction and that was how segregation comes into play.

Segregation is a means of separating nodes from signatures, meaning to separate signatures in bitcoin transactions. There was an improvement which deals with a reduction in the size of the bitcoin blockchain storage size in a particular block.

Benefits of Segwits

It helps to increase the capacity to store more transaction in a particular block at a time which also shows low transaction fee making it more fast, reliable and efficient to use which also mean a faster transaction at a time.

How does one differentiate if my wallet address is Segwit or Legacy

Using a legacy Bitcoin Wallet the address starts with 1. For Segwit addresses, it starts with 3 and bc1 depending on either it is Native Segwit or Nested Segwit.

Differences between Segwit Bitcoin Network and Legacy Bitcoin Network

Fees charged for the transaction for using Segwit are lower than charges fees charged from using legacy

All miners can only see transactions sending to Segwit Network only when using Segwit while miners can only have access to legacy address when a transaction on the legacy Network

Segwits and legacy have little differences in the format being used mostly for representing the same thing mostly where they are assigned to control the bitcoin.

Segwits reduces the transactions data via removal of witness signature that is mostly needed to be store in one block whereby giving the block extra space and capacity to hold more transactions at a time.

Segwit addresses are the newly improved address been put into place while Legacy is more like an older version for blockchain transactions.