Over on YouTube, Franklyn’s channel does a great job explaining SegWit (the Segregated Witness.)
Within the Bitchain is a block that has several components:
- The Block Header
- Transaction Counter
- Transaction List
Transactions in the block take up the majority of the block size. The size of a block is limited to 1MB and the transaction component of the block is broken down to:
- Input Counter (where coins are coming from)
- List of inputs
- Output Counter (where coins are going to)
- List of Outputs
- Lock Time
Segregated Witness Block Changes
In a standard block there is a signature that takes up 60% of the block size, residing in the input component. This signature proves that the sender has the coin (or fraction thereof) needed to complete the transaction.
In a SegWit, the block is restructured to remove the so that the signature (sender proof of funds) is moved outside the Input component and into its own Witness Component further down the block. This is visually depicted in the following video (around 1:40.)
What’s the Point?
Makes the transaction ID more predictable to calculate.
Can prevent transaction attacks and tampering.
Possibly the most important aspect is that the block size limit expands from 1MB to 4MB.