Steem Crypto Academy Week 3; Homework Post For @gbenga – Why I Prefer A Segregated Witness Bitcoin Network

in SteemitCryptoAcademy3 years ago

Thank you so much professor @gbenga for the lectures. I really learnt a lot and thanks to all the organizers for this opportunity.

For the task, I prefer a Segregated witness (SegWit) Bitcoin Network because of some specific reasons.

While Legacy Bitcoin network is the original BTC network as it was in 2009, the segregated witness (Segwit) Bitcoin network is the newer format that separates the signature of the witness in a specific transaction thereby reducing the size of the transaction data needed to store in one block.

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Below are the reasons I prefer the Segregated Witness Bitcoin network to the legacy network;

Transactions In A Block: The reduction in the size of transaction data allows each block to have extra capacity to store more transactions per block. This means that the network can process more transactions per block and the sender pays lower transaction fees. Hence, the transaction confirmation lead time is improved alongside the benefits of added security.

First, the SegWit network by separating the transaction signatures involved with a specific transaction has the capacity of reducing the size of transaction data as stated above. This therefore enables more transactions to be stored in a block. This is a total improvement of the

It is Backward Compatible

SegWit BTC network allows one to send funds from a SegWit address to a legacy address. This makes it backward compatible.

Elimination of Transaction Malleability

Before the inception of SegWit, transaction ID could be manipulated or changed by manipulating the unlocking code, but SegWit fixes this transaction malleability of users tampering with transaction identity by creating a unique transaction ID. If any character is changed, a different transaction ID is created in entirety.

With SegWit, the signature is moved to the end of the transaction data, so the Transaction ID is created from everything but the digital signature.

By eliminating the possibility for transaction malleability, secure payment channels could however be created which will enable the Bitcoin network to eventually execute millions of transactions in a second.

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Effective Bitcoin Scalability to accommodate it's User-base

SegWit also allow Bitcoin scalability, making it easier to accommodate it's ever expanding user-base.

Screenshot_20210223-011705~2.pngsummary of the SegWit network

In conclusion, SegWit is more like removing the signatures so that more space is created for transactions. SegWit nodes can receive blocks that are about 4MB in size. In order for a this to happen, it would have to consist of primarily witness data rather than transaction data. With the witness data, it would be incredibly close to 4MB and still less than 1,000,000 bytes when stripped of the witness data.

Thank you so much for your time.. I'm really looking forward to the next lecture.. Steem on! Cheers!

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