A change in the transaction format in Bitcoin is Segregated Witness or SegWit. The Reason for its creation is a protocol upgrade to protect against malicious activities. Another purpose is for decreasing transaction time in order to increase the block capacity. Transaction malleability is a tiny piece of information in the transaction that is changeable. It could invalidate new cryptocurrency blocks. In addition, it could fasten the validation process, so there could be more transactions in a block. The Bitcoin network covers thousands of computers acting as validators for the miners’ blocks. It refers to nodes. Nodes store every transaction record, or it is majorly known as blockchain. However, the Bitcoin network may encounter many problems when it is maturing.
One of the issues may occur when there are more blocks in the chain. Bitcoin creates blocks every 10 minutes with the maximum size of one megabyte. A block could also receive numbers of transactions. Blocks represent the number of transactions. Sometimes it could cause delay in the processing and verifying transactions. Mostly, it would take a few hours to validate the transaction. Therefore, if Bitcoin does not adopt SegWit, the validation might be slowing toa crawl as it grows to popularity and transactions increasing.
There are two segments in the SegWit protocol. In the original portion, the unlocking signature is removed. However, it stays as a blockchain part separated from structure at the ends. In this case, the original portion keeps both the data receiver and the sender. The witness structure covers signatures as well as scripts. In the end of the data segregation, more space is available and blockchain is also available for more transactions.
