Segregated Witness (SegWit) is a Bitcoin protocol upgrade that addresses transaction malleability and scalability issues. It separates transaction signatures from the blockchain, freeing up space in blocks for more transactions. This increases Bitcoin's capacity and improves security by preventing signature tampering. While SegWit provides benefits like lower fees, some nodes and miners were reluctant to support the new protocol. Further upgrades may still be needed to fully address Bitcoin's scalability challenges.

1. SEGREGATED WITNESS
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3. PROBLEMS OF BITCOIN PROTOCOL
•Transaction malleability flaw-The Bitcoin protocol featured a flaw that could potentially allow
any malicious attackers to access the digital signature and manipulate the resulting transaction
ID to steal funds.
•Transaction speed-Bitcoin blockchain as the transaction speed was quite slow between 2009
and late 2017, at around 3-5 TPS.

6. BLOCK STRUCTURE

7. WHAT IS BITCOIN SEGWIT
1. Segregated Witness (SegWit) is a Bitcoin blockchain protocol
upgrade primarily developed to protect against transaction
malleability.
2. SegWit was created by Dr.Peter Wuille,2017 winner of
Coindesk’s Most Influential person, Blockchain Awardee ,who is a
co-founder of Blockstream.
3.The first proposal SegWit2X was dropped, before releasing the
code for the second proposal in 2015, which is the SegWit we know
today. Following a couple of years of development, SegWit went live
on the Bitcoin network on August 23rd, 2017, introducing various
improvements to the Bitcoin blockchain, including solving the
malleability flaw and enhancing transaction efficiency.

8. HOW DOES BITCOIN SEGWIT WORK ?
1.Segwit works by separating some data from the block, making it unavailable for modifications.
This separation creates two sections. The first section of the block contains the sender and
receiver's wallet addresses, while the second section contains the digital signatures, also known
as "witness data."
2.Because witness data is separated from the main block, more space in the block is freed up for
more transaction data to be recorded. This, in turn, increases the capacity of the block and
directly impacts the performance of the Bitcoin network, significantly improving scalability.
3.Segregated data,the digital signature, is encrypted and stored on a side chain. This added
layer of security on top of the separation from the main net makes it impossible to change the
transaction's digital signature, hence solving the malleability flaw.

9. SEGWIT BLOCK SIZE

12. ADVANTAGES OF SEGWIT
• Solves transaction malleability: SegWit addresses the transaction malleability flaw,
ensuring more reliable and secure transactions.
• Improved security: By fixing transaction malleability, SegWit enhances the network’s
security and enables the implementation of future security features.
• Improved scalability: SegWit increases the block capacity, allowing for more transactions,
reduced fees, and faster confirmation times.
• Lower transaction fees: With increased block space, competition for transactions
decreases, resulting in lower fees, particularly beneficial for small transactions.

13. • LIMITED NODE SUPPORT: WHILE MANY EXCHANGES AND WALLETS HAVE ADOPTED SEGWIT, NOT
ALL NODES SUPPORT THE NEW PROTOCOL.
• RESISTANCE FROM PROFIT-ORIENTED MINERS: MINERS SEEKING HIGHER TRANSACTION FEES
MAY BE RELUCTANT TO APPLY SEGWIT.
DISADVANTAGES OF SEGWIT

14. OVERALL ASSESSMENT
• SegWit was a necessary and beneficial upgrade to the Bitcoin network, improving security,
scalability, and transaction efficiency.
• However, further adjustments are required to address the scalability issue fully and
increase the network’s performance.

15. THANK YOU