Bitcoin Core 0.16 Sees SegWit Transactions Hit an All-time High
The Segregated Witness (SegWit) update that was rolled out in Bitcoin Core 0.16 has seen a flurry of transactions in the Bitcoin space. It is now up to 30% of all total Bitcoin transactions, and this amount can be expected to rise now that major exchanges such as Coinbase and Bittrex have rolled the update out onto their platforms.
SegWit to Solve the Problem of Scalability
The issue of Bitcoin’s scalability has grown and grown, coming to a head over the hectic Christmas period, when transaction time and cost escalated massively due to the surge in prices experienced across global crypto markets. This has undoubtedly been one of the causes of the early 2018 decline in trade, coupled with the major deflation of Bitcoin’s value.
However, SegWit separates transactional and signature data, lightening the load on each processing block. So, while the block size for Bitcoin (1mb) isn’t scalable, the introduction of SegWit is a great deal more efficient, and finds space for an increased number of transactions. This, in turn, will see proportional transaction costs decline rapidly, which Bitcoin and the exchanges will hope brings a number of traders back to the market.
This is the first, comparatively small step for Bitcoin though. The hotly anticipated release of the Lightning Network, which claims to have the answer to all transaction issues going forward, has been heralded as Bitcoin’s potential saviour. However, the roll-out has been in the pipeline for some time, and one of Bitcoin’s core developers, Peter Todd, took to Twitter on Monday to express his concerns.
Initial impressions of Lightning on testnet: c-lightning segfaults a lot, and when it's not crashing payments fail more often than not. Writing it in C – a notoriously dangerous language – doesn't strike me as a good idea.
— Peter Todd (@peterktodd) February 26, 2018
Have you used SegWit yet? Do you agree with Peter Todd’s assessment of the Lightning Network? Let us know your thoughts.