The Bitcoin Core developers have offered to market their own SegWit in a form of a soft fork. The ideology of this project is the optimization of block sizes, the decisive issue on scaling Bitcoin networks. If we rephrase the above information, then we can say that this system allows to artificially increase the effectiveness of the block. In this case, transactions will occur faster and the commission will simultaneously decrease.
The soft fork changes the rules, according to which the block is subjected to authentication in the blockchain. In this case, the project offers only changes in some system codes that do not affect the basis of the software.
Many users compare soft fork and hard fork, because they both have one goal – code change. The hard forks can be called more rapid and hard, but that’s probably all. In the case that any error has been committed in the Bitcoin protocol, the program can damage all system settings. Under the same circumstances, using a “slower” soft fork will achieve the goal, with no tangible consequences.
Advantages and Prospects of SegWit
Prospects for the SegWit is in the fact that the soft fork allows you to solve the problem of scaling Bitcoin networks. The program successfully manages to separate transaction signatures from their transfer processes. The result of these actions is that the transactions themselves take up less space, and the capacity of the Bitcoin network increases. In addition, the plasticity of transactions increases, and along with this, the time period that is required to complete them is shortened.
The incontrovertible advantages of SegWit are that by excluding only 1 MB for each transaction from the general space of the blockchain block, it will conduct ten times more operations through the network. And all these actions are performed without major changes in the main software. It turns out that the rules of the consensus of the blockchain are not changing, and the speed of processing transactions is increasing.
SegWit will also be useful for users who have “full nodes”, because the program can reduce the total amount of data that is supposed to be stored on hard disks. In other words, SegWit will make the full node start faster and easier.