SegWit.party: New York Agreement On Would-Be BTC Fork?
Bitcoin is one of the most used cryptocurrencies across the globe. Although there is nothing wrong with that, it comes with a lot of responsibilities, some of which include large volumes of daily transactions. In any Cryptocurrency, when the number of activities on the platform continues to increase, it limits its block size. The functionality of the blocks slows down with time, which becomes more noticeable when the transaction demand is high.
To solve this problem, Bitcoin came up with a proposal for codes to expand on its block size. One of those codes is SegWit.
What Is SegWit?
SegWit “Segregated Witness” is a code that aims at increasing the size of Bitcoin blocks by dividing the original system blocks into two. One of the blocks then remains the original block while the other becomes its extension “Witness.”
How Does SegWit Work?
Once the original Bitcoin division, SegWit works by transferring the transaction scripts to the extended block. Through this, there is more space left in the original block thus solving the storage issue. However, there is no difference in the block size only that it can accommodate more data, through the witness block. The Witness block is said to be a quarter of the original block.
In other words, the original block is left to accommodate data related to the sender and receiver while the Witness block takes care of the scripts and signature.
SegWit New York Agreement On Would-Be BTC Fork Benefits
SegWit provides Bitcoin users faster transaction, which makes the platform user-friendly. Also by getting rid of the long transactions confirmations, the Bitcoin system manages to stay secure for all, given long confirmations cause system vulnerability.
Additionally, since SegWit is entirely compatible with the original Bitcoin code, it is easier to implement on Bitcoin’s blockchain system. Through this, users can go on with their transactions without changes in the currency and other features concerning incompatible codes.
Still, on that, faster transactions mean less transaction fee to users since the flow meets the demand, hence no pressure in the operating system.
Furthermore, SegWit is set to embrace the use of “Light Technology” which helps in sorting out transactions from the central Bitcoin blockchain. Through this, users on the platform gain from instant transactions which saves on the offloading costs. Light Technology boosts small-scale users by getting rid of unnecessary transaction fee imposed on small transfers.
Why Should I Not Use SegWit?
While there are so many reasons that would make you want to start using SegWit, there are claims out there on the market that it’s not functioning correctly. The rising number of Bitcoin users over the recent months doesn’t reflect on the use of SegWit as it’s currently registering few transactions. So at the moment, we are left wondering whether the considerable support signals at the launch of SegWit was just another sham.
The under usage of SegWit has led to overwhelming transactions on Mempool which increases the transaction costs. There are more loopholes as to why the adoption of SegWit is still on the lower side.
SegWit is a code aiming at expanding the size of Bitcoin users as a way of improving the functionality of the blockchain system. However, since its release, the code is yet to receive enough support to qualify it as a success. Therefore, investing in it at the moment might not be a good idea.