Crypto Academy Week 3 Homework Post "Segwit Bitcoin Network or Legacy Bitcoin Network"
This is @aniqamashkoor. I am making my homework post for lecture 3 given by @gbenga over All You Need to Know About Bitcoin Network. This homework is about bitcoin networks and Segwit Bitcoin Network or Legacy Bitcoin Network.
TASK
Segwit Bitcoin Network or Legacy Bitcoin Network, which do you prefer and why?
source
BACKGROUND
Today's market is full of different cryptocurrencies and like all other things they also possess a set of rules that guide the way they process. These sets of rules are known as the protocol. Like all other programs, cryptocurrencies also need to be updated and improved. In the process of updating and improvement, protocols need to change. Hence, SegWit was an update made to the Bitcoin protocol.
SegWit (Segregated Witness):
source
The main aim of SegWit is to reorganize block data so that signatures may no longer be placed along with transaction data. In other words, the SegWit overhaul comprises isolating the witnesses (signatures) from transaction data. This permits for more transactions to be put away in a single piece, expanding the exchange throughput of the network. It was recommended by Bitcoin engineer Dr. Pieter Wuille that the advanced signature has to be isolated from the exchange information. In short, from its name, we can conclude Segregate means to separate, and Witnesses are the transaction signatures. Hence, Segregated Witness means to separate transaction signature.
Legacy Network:
Legacy is also a format that determines that it has been inherited from the original Bitcoin addresses that it has maintained since its inception. They have slow transaction speed and the addresses of the wallets that belong to Bitcoin Legacy, that is, those inherited from the original Bitcoin, start with the number 1. source
which I prefer and why?
My preference is the Segwit network because of its obvious important as it is an improvement over the current bitcoin blockchain and enables us with following benefits
- Exchanges quickly: SegWit makes the Bitcoin blockchain lighter. It permits more exchanges to be prepared without expanding the by and large Bitcoin blockchain estimate.
- Hence Segwit is backword compatible it allows us to send funds to both old and new wallets from it. This is also another reason I prefer Segwit netwoks.
- Beside having a block that can store more transactions, It also has the ability to increase transaction speed. By Increase in speed it has also helped reduce transaction costs within the Bitcoin network.
Special mentions;
@steemcurator01
@steemcurator02
@steemitblog
@gbenga