Homework | Week 03 | Segwit bitcoin network and Legacy bitcoin network | Professor @gbenga
Hello friends,
I hope you all are well. Today I am going to complete homework task 03 recommended by professor @gbenga. I hope to complete this successfully.
Homework - Task 03
Segwit Bitcoin Network or Legacy Bitcoin Network, which do you prefer and why?
Segwit bitcoin network
The concept of SegWit was formulated by bitcoin developer Pieter Wuille. Source
Segwit bitcoin is also a Bitcoin-related activity. This helps to increase the block size limit of a blockchain. That is, the process of increasing the block size of a blockchain by removing signature data from Bitcoin transactions. When certain parts of a transaction are removed, the segwit network releases more capacity to add more transactions to the chain. Segwit helps to increase the block size limit by extracting signature data from bitcoin transactions.
Bitcoin Network has introduced this segwit bitcoin network as a simple and creative solution to a major problem in the bitcoin protocol. Therefore, this makes it easier for users who use bitcoin.
Let us now see the advantages and disadvantages of segwit bitcoin network.
Advantages of Segwit bitcoin network
• The segwit bitcoin network allows to generate more transactions without increasing the total bitcoin blockchain size.
• Segwit eases bitcoin blockchain as bitcoin transactions are faster.
• Segwit greatly contributes to the growth of the bitcoin blockchain by reducing the problems of the bitcoin scale.
• Segwit charges a lower fee for its transactions.
Disadvantages of segwit bitcoin network
• Segwit is a short-term solution to a major problem with bitcoin. This is a slight disadvantage as it is a short term solution.
• It is also a disadvantage not to use enough nodes.
• The inconsistencies around Segwit have caused some controversy in the bitcoin blockchain network.
Legacy bitcoin network
The Legacy bitcoin network is the first bitcoin network. It was the first bitcoin network in 2009. The address here is easily identifiable. It's easy to identify because it starts with the number "1". Also the legacy bitcoin network shows a slow transaction.
Advantages of legacy bitcoin network
• Legacy bitcoin network is the first bitcoin network so it supports all exchanges and wallets. Because it is the starting address from which it was created.
• Another advantage is that these Bitcoin network addresses can be used on all wallets.
• This bitcoin network address starts with "1" so it is easy to identify.
Disadvantages of legacy bitcoin network
• Since this is the first bitcoin network, the technology used here is also old technology.
• The main disadvantage here is that transactions are slow and there is a high charge for transactions.
Looking at the Segwit bitcoin network and the Legacy bitcoin network, I think the Segwit bitcoin network is better. While there are several disadvantages, those disadvantages can be overlooked compared to the legacy bitcoin network.
The End.
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Thanks a lot for participating in this week's task. I hope to see you in subsequent classes
Question: We know that Bitcoin is the most dominanant cryptocurrency and will get more traction in the nearest future which means it will still have the scalability problem. What do you profound as a solution?
Rating 4/10
Yup sis you are right there is high charge for withdraw specially on coinbase.