Segregated Witness (SEGWIT)

Segregated Witness (SEGWIT) is a technology upgrade for the Bitcoin network that separates some transaction data from blocks and stores it in a separate data structure called the "witness." This data structure increases the block size limit without changing the maximum block size, allowing for more transactions per block and reducing transaction fees. SEGWIT was introduced in 2017 as a solution to the scaling issues plaguing the Bitcoin network. Before SEGWIT, the block size limit was set at 1MB, which meant that only a limited number of transactions could be processed in each block. As the number of Bitcoin users grew, transaction times and fees increased, making it less practical for everyday transactions. The introduction of SEGWIT allowed for more efficient use of block space, increasing the capacity of the network and reducing transaction fees. It also enabled the implementation of other technologies, such as the Lightning Network, which further improved the Bitcoin network's scalability. Overall, SEGWIT is an essential upgrade that helps to improve the Bitcoin network's performance, making it more practical and accessible for everyday use.