Bitcoin mining pools reached full consensus on activating Segregated Witness (SegWit), a software upgrade that will change how the network processes transactions. All mining pools signaled support yes
Bitcoin mining pools reached full consensus on activating Segregated Witness (SegWit), a software upgrade that will change how the network processes transactions. All mining pools signaled support yesterday, triggering a two-week countdown before the change goes live on August 21 or 22.
The upgrade tackles a long-standing problem with Bitcoin's transaction format. The network caps block sizes at 1 megabyte. Pieter Wuille, a Bitcoin developer, designed SegWit to reorganize how transaction data gets counted. Witness data counts as one weight unit while core data counts as four, allowing blocks to reach four million weight units instead of the one-megabyte limit.
The approach addresses multiple issues. It increases network capacity, accommodating more transactions per block. It also patches transaction malleability, a vulnerability where attackers alter a transaction's ID before confirmation. The upgrade enables layer-two solutions like the Lightning Network, letting transactions move outside the main blockchain for faster settlement.
Bitcoin Improvement Proposal 91, activated on July 20, created the technical foundation for SegWit. That earlier upgrade helped miners coordinate on the new format. During the two-week grace period ahead, miners and users must update their software.
The upgrade sparked debate in Bitcoin's community, with miners, developers, and merchants disagreeing on the change. Other networks moved faster. Litecoin and Viacoin activated SegWit, while Vertcoin and SysCoin built Lightning Network implementations.
The announcement coincides with Bitcoin hitting fresh records. The price broke above $3,450 on Tuesday. The cryptocurrency has climbed 75 percent from the mid-July floor of $1,940.
