Post
Topic
Board Bitcoin Technical Support
Re: What are segwit's benefits and overall goals?
by
fexkomin
on 20/08/2023, 10:42:07 UTC
SegWit's benefits include:

Transaction Malleability Fix: As mentioned, SegWit addresses the issue of transaction malleability, making the Bitcoin network more secure.

Block Size Increase: While SegWit doesn't directly increase the block size, it allows for more transaction data to be included in each block by removing the signature data from the block size calculation. This effectively increases the block's capacity without requiring a hard fork.

Lightning Network Support: SegWit lays the foundation for the implementation of the Lightning Network, a second-layer scaling solution that enables faster and cheaper off-chain transactions.

Script Versioning: SegWit introduces a versioning system for Bitcoin scripts, which could potentially enable easier upgrades to the scripting capabilities of Bitcoin in the future.

Fee Reduction: By optimizing the way transaction data is stored in blocks, SegWit transactions can require less space, resulting in potentially lower transaction fees.