What are the differences between Bitcoin SegWit and Legacy?

1 answers

• Dec 20, 2021 · 3 years ago
  Bitcoin SegWit and Legacy are two different transaction formats used in the Bitcoin network. SegWit, short for Segregated Witness, was introduced in 2017 as a soft fork upgrade to the Bitcoin protocol. It aims to solve the transaction malleability issue and increase the block size limit without a hard fork. SegWit achieves this by separating the transaction data and the witness data, which includes the signature. Legacy transactions, on the other hand, include both the transaction data and the witness data in a single block. The key difference between SegWit and Legacy is that SegWit transactions have a smaller size, allowing more transactions to be included in each block. This leads to lower fees and faster confirmation times for SegWit transactions. Additionally, SegWit enables the implementation of second-layer solutions like the Lightning Network, which can further enhance the scalability and speed of Bitcoin transactions. Overall, SegWit brings significant improvements to the Bitcoin network and is widely adopted by users and exchanges alike.
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