Now it’s official: Segregated Witness — SegWit protocol activation took place in the Bitcoin network after a long and difficult way. The historic moment occurred on August 24, 2017, at 01:57 UTC on the block 481,824, found by the BTCC pool.
With the SegWit protocol activation, a number of problems will go away. Also, some opportunities will appear for significant network scaling and the implementation of various innovative projects.
Main Advantages of SegWit protocol activation
Embed from Getty Images
Among the main improvements, in the first place is the reorganization of the way data is stored in blocks. That, thereby, will increase the network bandwidth. Another improvement is eliminating the plasticity of transactions. That was a problem that was literally a stumbling block for Bitcoin developers.
What the main advantages of the SegWit protocol for ordinary users? It may be that over time, transactions should become cheaper. Also, the waiting time for their confirmation will become shorter. This will be possible due to an increase of approximately 75% of the network bandwidth.
Segwit Protocol Activation and Lightning Network
Also, now, in the Bitcoin network, it is safe to launch the Lightning Network protocol. It is a solution designed to perform micro-transactions. Before SegWit they were unprofitable because of high commissions.
Embed from Getty Images
In addition, it is worth noting another important fact. SegWit already existed in the Litecoin network. And made Lightning transactions viable in the same way. Therefore, in the future, it is possible to hope for the implementation of atomic transactions via the Lightning Network. Two users will be able to instantly and securely exchange BTC to LTC. This, in turn, may facilitate the emergence of efficient decentralized exchanges. It also makes it possible to pay LTC even in those terminals where merchants accept only BTC. In fact, this is a decentralized analog of ShapeShift.
Whatever it is, at this stage – all this is a matter of the future. In the meantime, we can say with certainty that at least one part of the drama around the scaling of Bitcoin is over. Is the drama itself complete? There are no boring days in the world of cryptocurrency. More so, if we think about the probability of hard fork SegWit2x in November (Check our blog for more news)