The positive results for Bitcoin growth in 2019 keep coming in with the latest being a notable increase in the number of SegWit transactions on the network.
According to data first shared by CasaHODL CTO, Jameson Lopp, on Twitter via Segwit.space, the number of SegWit transactions increased by as much as twenty percent, in 2019, continuing a sterling adoption record since protocol upgrade went live on Aug. 23, 2017.
Wen SegWit? 2019! Bitcoin transactions spending SegWit outputs increased another 20% this year and now the majority of transactions spend SegWit outputs. https://t.co/iIUVZzU9DU pic.twitter.com/3xXAtJg3q8
— Jameson Lopp (@lopp) December 28, 2019
What is SegWit?
Segregated Witness (SegWit for short) is an upgrade to the Bitcoin protocol introduced by developer Peter Wiulle in 2015, before its eventual integration in August 2017. This upgrade solved an issue on the Bitcoin network that allowed transaction data to be altered before they’re processed by the network (transaction malleability).
It allowed transaction signatures to be verified even though they’re stored outside the block of transactions involving them. SegWit integration also allowed more transactions to be entered into a block, making the network faster and fees cheaper.
However, given that firms such as crypto exchanges and wallet providers are not mandated to implement the upgrade, bitcoin transactions done on these platforms, e.g. (Binance and Blockchain.com), are significantly expensive and take longer to settle.
The long-term goal is that as more Bitcoin network participants adopt SegWit, transactions will be cheaper, faster, and the network can scale. Hopefully, more companies would adopt the upgrade in the new year, with Bitcoin widely expected to onboard many new users in the buildup to the 2020 halving.
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