Crypto Academy Week 3 Homework Post for [@gbenga] … SEGWIT Bitcoin Network and LEGACY Bitcoin Network
Both legacy bitcoin network and segwit bitcoin network are protocols on the same blockchain and performing the same function but the first thing that differentiates them is their date of innovation or introduction to the bitcoin blockchain. Legacy network was the conventional protocol during the early days of bitcoin but segwit came into place years later as an upgrade of the existing protocol.
The Lagacy bitcoin network is the foundational protocol in which every data involved in the transaction of bitcoin are stacked into blocks that forms the blockchain. Each block size is about 1 megabyte which is a limited space to contain data of transactions per time. This limited space slows down the the rate of execution of transactions. In order to free up space in these blocks SegWit was created.
SegregatioaboutWitness (SegWit) is a type of protocol that allows the witness(digital signatures) of transactions to be separated from the data. This free up about 65% of the space formally occupied and consequently allows more transactions to be executed per time.
Making preference for one (SegWit) over the other (Legacy) would demand a thorough consideration of the two under the following highlights:
- Advancement
- Scalability
- Speed
- Cost
Advancement: The SegWit is basically an improvement to solve the problems of the already existing protocol, Legacy. Just like the everyday technology we are familiar with, the later version seems to solve the problems of the older version, perform better and prove more effective. However, the SegWit is preferable being an advancement of the foundational protocol.
Scalability: The legacy network is known to execute only about 5-7 transactions per seconds due to its limited space per block. However, separating the digital signature from the transaction data (as in SegWit) gives room for the same block to contain about four times the number of transactions it formally holds. This increases the number of transactions executed per seconds; which makes the SegWit network preferable.
Speed: as mentioned above, the SedWit network increases the capacity of the blocks making transactions faster when compared to the Legacy network.
Cost:the SegWit network has also reduced the cost for transactions. What could be charged for $30 on legacy due to the traffic of transactions would only cost about $3 on SegWit.
In conclusion, the SegWit network posses more advantages the Legacy network. SegWit being an advancement is an Eye-opener for better improvements for the effectiveness of the cryptocurrency industry. However, I prefer the SegWit Bitcoin Network over the Legacy Bitcoin network.
Thank you.
Hello, thanks for participating in this week's home task. I will like to make a correction;
Your heading has an error "SegWit, not SedWit" This mistake was made severally in your post.
Thanks for checking through @gbenga... I never notice that. I thought i was writing SegWit.
Can't wait to be a part of your next lesson