SegWit, short for Segregated Witness, is a Bitcoin protocol change that allows a different format for storing transactions to increase block usage and prevent transaction malleability. With these changes, SegWit helps solve previously limiting scale issues experienced on the Bitcoin network. According to Diar, approximately 36 percent of blocks on average use SegWit and its share is expected to grow.
“In addition to aiding the scaling limitations that Bitcoin has been known for, SegWit also allows for second-layer solutions, such as Lightning by preventing transaction malleability. Not only does this technology help resolve some past issues, but it also enables future improvements such as Taproot and Schnorr signature aggregations. These future features will allow even greater improvements in the capability and scale of Bitcoin,” said James Poole, Chief Technology Officer, TokenSoft.
On behalf of its clients, TokenSoft continues to drive innovation in its blockchain development and look for new ways to enhance the speed and scale of transactions.