Goals of SegWit depend on its implementation. There is a requirement for SegWit in order to send Bitcoin to another user like a private key and public address. A digital identifier acts as a public address for entities involved in the transaction. In order to send and receive Bitcoin, users must own a public address. Thus, the network could see all the addresses. Private keys are unseen because it is for verification the public address is for the user. Basically, the transferring process in Bitcoin begins with a user broadcast requesting a network. The broadcast covers public address, amount of sent Bitcoin, and transaction fee for the miners.
Then, miners process transactions, encryption occurs in the information between two users. In other words, the data could become a computer line code named transaction ID. At this stage, the transaction is waiting. Transaction would keep queuing until it reaches the block limit. Then a new block occurs. The nodes create the broadcast, if only more than half of the rest nodes approve that the information is valid. In this case, Bitcoin could finally operate between users. As it is operating the network might encounter slowdown as numbers of transactions occur.
SegWit answers the issue over transaction speed. Dr. Pieter Wuille, Bitcoin developer believes that in order to meet the goals the issue digital signature and transaction data should be in segregation. A block weight limit of SegWit for 4 million weight units is Bitcoin’s transition. It means that a block without SegWit holds 1 million weight units. Meanwhile, one that uses SegWit holds 4 million weight units. The limitation for the old block is 1 MB, cryptocurrency fans argue that it represents 1 million weight units.
