New proposal to update the Bitcoin network

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The Segwit or Segregated witness is a proposal to update the Bitcoin network developed by the Bitcoin Core team. This proposal has been planned as an update carried out through a soft-fork.

In other words the Segwit is a proposal for software that allows separating (segregate) signatures from transactions (witnesses) from the rest of the data in the transaction which allows miners to put those “witnesses” outside the traditional block structure. This produces two immediate benefits.

Segwit Benefits

Elimination of malleability: Separating the witnesses will allow both existing software and future updates to receive transactions and verify transaction identifiers (txid) without reference to the witnesses. This solves all the known cases of malleability unwished transactions by third parties which are a problem that makes Bitcoin programming wallets more difficult and also complicates the design of intelligent Bitcoins contracts.

Increase network capacity: Moving data from witnesses outside the traditional block structure (but still within a new brick structure) will produce a new block style that can contain more data than the old blocks allowing a modest increase the amount of transaction data that can fit within a block.

Segwit also simplifies the ability to add new features to Bitcoin and increase efficiency of the nodes which would generate many long-term benefits.

More compact blocks.

Segwit allow Bitcoin miners include more transaction data blocks which can be included at this time. This will increase the size of the bandwidth demanded on Bitcoin. Nodes can all the data while the latency between the time a new block is published and a receives increases (this considering that generally a larger amount of data takes longer in its propagation). To help reducing the negative effects of the update Core Bitcoin developers plan to use a method called “compact block relay” as a way to reduce the amount of bandwidth required to send a new block spread to the nodes. This update is expected to be available for Bitcoin Core version 0.13 onwards.

How will the Segwit affect?

  • Miners: Those who choose to run the update that includes the Segwit have the responsibility to ensure they are ready to enforce the Segwit by improving its nodes validation.
  • Nodes Operators: They can continue using their nodes but it s recomended to update the Segwit version. If any of the miners produce invalid blocks under the rules of Segwit after activation updated with Segwit nodes automatically they rejected those blocks. this update is especially important for anyone whose business accept transactions with a limited number of confirmations.
  • Core Wallet Bitcoin Users: They can continue using their existing nodes. Even if you perform the upgrade you will not see the changes described above. The code is expected to be published in version 0.12.2 which would not generate default segwit directions.
  • Other Bitcoin Wallet Users: They can continue using their existing wallets. It is recommended that users always wait for light wallets several confirmations when they receive significant amounts of money and it is expected that there are no extra timeouts. When you have the opportunity to upgrade to a wallet that supports Segwit it is possible that the transaction fee you have to pay when you send Bitcoins could be slightly lower. This is because the data “witness” is external which reduces the size of the transaction.

Source: bitcoincore.org

Disclaimer: This press release is for informational purposes only. information does not constitute investment advice or an offer to invest. The views expressed in this article are those of the author and do not necessarily represent infocoin views , and should not be attributed to, Infocoin.

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