I'm waiting for franky to get a panic attack, and write 10 paragraphs on how Segwit does not improve anything.
I have 2 questions, if you were kind to answer.
1) What does security/efficiency improvement for hardware wallets means?
Isnt segwit general purpose, what special advantage do hardware wallets get? Please explain.
2) What does P2SH 256 bit mean? Is ECDSA or RIPEMD160 replaced in those kinds of transactions? How does the 256bit securiy manifest itself?
I also have other criticisms of Segwit, mainly the steering away from onchain scaling towards offchain scaling, which would really mean centralization.
When the transactions are not settled on the blockchain, then you essentially enabled fractional reserve banking. Because anyone can just make up coins out of thin air, if payments will be handled on a secondary chain.
This is the whole point of the blockchain, to have a liquid payment system + settling in 10 minutes, not 4 days like banks do.
It would be a huge mistake to derail from that path.
As soon as I see signs of fractional reserves in BTC, I will have to abandon it. I dont want BTC to turn into a fiat currency.