Crypto academy week 3 home work post for @gbenga
Hey there everyone. This post of for Home work given by professor @gbenga. So let's get started
what is a bitcoin
So we all know that today's world of full of many crypto currency and bitcoin is one of the most popular crypto currency in the world. If you watch news, you will come to know every day a new price record is set by bitcoin. So it is very popular now a days.
It works on P2P technology this means there is no third person involved in the transaction. Only sender and receiver are involved in this.
The main purpose behind developing the bitcoin to solve the problem of slow and expensive transaction of money.
segwit bitcoin network
The problem with the traditional bitcoin was that it contained three parts :- sender information, receiver information and digital signature. The use of digital signature was to the verify that the ongoing transaction is valid or not. This means the sender who is sending bitcoin has the right to do so or not.
So it contained much information and the size of a block was bulky. And due to this, the network verifies a relatively small amount of bitcoin every second.
So in 2015 Pieter Wiulle upgraded the bitcoin to make of Faster. With this the digital signature part was removed to make it lighter so that every second more bitcoin can be transferred simultaneously.
legacy bitcoin network
This is the original bitcoin addresses. Not every wallet that holds bitcoin are upgraded for segwit network. So due to this some wallet can only send and receive original bitcoin network.
So in this you will find digital signature too along with information regarding receiver and sender.
difference between legacy and segwit network
The basic difference between the legacy and segwit network is its address type.
Legacy network address starts with digit 1
While the nested and native segwit network address starts with 3 and bc1 respectively.
And another difference between these are that as legacy network is the original bitcoin network, so all wallet support this but segwit being the upgraded is supported by lesser wallet
conclusion
So as we discussed above, the basic difference between legacy and segwit network is that, segwit network doesn't have digital signature with it. So many more bitcoin can be transferred every second. And also in this process the transaction fee is also lesser than the original bitcoin network that is legacy network
So if you want to transfer bitcoin faster and with less fees, segwit network is best for you.
But legacy network contains the digital signature so it is more secure than the segwit. So if you are a security lover, legacy network is for you..
So you can choose upon your own terms and conditions.
You have done well explaining the bitcoin Networks. In your post, you wrote;
Question: Do you think Bitcoin is fast enough to solve the problem it was intended to solve or are altcoins doing it better?
Rating 6/10
No bitcoin was fast but was not fast enough to solve problems. That's why in order to decrease time, many other blockchain were formed like ethereum. And also there are many coins that are very fast than bitcoin when it comes to transfer them. Like tron and Ltc. I think it are faster than bitcoin..