What is SegWit (Segregated Witness)?
SegWit, short for “Segregated Witness,” is a technical innovation implemented in blockchain networks like Bitcoin to address critical issues such as scalability and transaction malleability. Introduced in 2017 via a soft fork, SegWit changes the way data is stored within blockchain transactions, optimizing network performance.
The term “Segregated Witness” refers to the separation of the transaction signatures (witness data) from the transaction data. By moving the signature information out of the main block, SegWit effectively increases the block’s capacity to include more transactions without increasing the block size limit. This makes the network more scalable and efficient.
One of the most significant benefits of SegWit is its mitigation of transaction malleability. Isolating the signature data prevents tampering with the transaction ID, enabling features like the Lightning Network, which enhances transaction speed and efficiency for microtransactions.
For businesses and users interacting with blockchain systems, SegWit improves the overall functionality of cryptocurrency networks. It enables faster transaction processing, reduces fees, and provides a foundation for further innovations in blockchain scalability solutions.
