It has been developed by the Bitcoin Core team, which continues to work for a long time. Bitcoin Core is the most popular Bitcoin reference interface currently used by the majority of businesses in the industry.
As a matter of fact, the update process was aimed at resolving the formability of the process, a known weakness in Bitcoin software. And this attack vector was used most of the time, emphasizing the need to correct it, in most cases even if it did not harm users.
In addition, SegWit offers a number of other benefits and now shifts its focus to solving the Bitcoin scaling problem rather than fixing processability.
How does SegWit Bitcoin provide a solution to the scalability problem?
Segwit allows the implementation of second layer solutions by raising the limit of Bitcoin block size.
Bitcoin’s current problems with scalability are due to the insufficient block size. The blockchain consists of consecutive processing blocks. For this reason, the blockchain is the registry of all transactions that have taken place in the network up to now – the heart of cryptocurrency.
The problem here is that the blocks have a 1 MB limit. This is not enough to add hundreds of transactions to the account that users try to send every minute. As the network expands, the transaction load increases, while the block size limit does not change, which means that the problem is constantly growing. As a result, many of these users have to wait until the transaction is confirmed; sometimes hours or even days…
SegWit’s solution is two-fold. First of all, it allows the block size limit to be instantly increased to 4 megabytes.
Here is a warning: 4 MB is the absolute maximum limit. Actual block size will depend on network conditions. Experts predict that the block size will be around 2 to 2.1 megabytes depending on SegWit’s rollout.
Second, by solving the workability issue of operations, SegWit does not just remove the small problem for Bitcoin, but also overcomes a major obstacle in developing second layer solutions on it. One of these solutions is the Lightning Network. It is expected to allow a large increase in network capacity by moving the transaction volumes from the blockchain for fast processing. If you want to read more about the topic, you can read more about Lightning Network (HyperLink).