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Bitcoin Core 0.18.0 Bets on Segwit Adoption and Hints at Offline Tx Signing

BTC

After several months of development, the Bitcoin Core 0.18.0 client was successfully launched with some modifications aimed at improving the efficiency of BTC mining and including some changes that in some way favor Segwit’s adoption.

One of the fundamental tweaks of this new update is that it
expects users to configure their software to be Segwit compatible. If this compatibility is not
supported, “getblocktemplate” command calls will fail, generating a lower
reward for the miners.

“Calls to `getblocktemplate` will fail if the segwit rule is not specified. Calling `getblocktemplate` without segwit specified is almost certainly a misconfiguration since doing so results in lower rewards for the miner. Failed calls will produce an error message describing how to enable the segwit rule.”

In this way, not only is the implementation of Segwit promoted, but they expect miners to achieve greater freedom and independence from their mining pools. The team also encourage miners to adopt this standard as a measure of increasing their profits.

Bitcoin Core: Focusing on Scalability and Convenience?

Another of the most important changes introduced with this update is the addition of an RPC known as joinpsbts. This allows to link several Partially Signed Bitcoin Transactions into a single common transaction. PSBTs also would be able to support offline txs.

This
client’s development team is determined to push for the adoption of Segwit.
They explain that according to their expectations, in one year the Segwit
standard should be globally adopted.

“Starting with Bitcoin Core 0.20 (expected about a year after 0.18), Bitcoin Core will default to native segwit addresses (bech32) that provide additional fee savings and other benefits. Currently, many wallets and services already support sending to bech32 addresses, and if the Bitcoin Core project sees enough additional adoption, it will instead default to bech32 receiving addresses in Bitcoin Core 0.19 (approximately November 2019).”

Not Everyone is Pro-Segwit

Segwit -or segregated witness- is an implementation that separates the tx signature from the transaction itself. In this way, miners can process more transactions in the same block, aiding the blockchain’s scalability.

How segwit works
With Segwit, signatures are outside the blockchain

This solution has been strongly criticized by BTC forks such as BCH and BSV, which state that the use of Segwit and other technological strategies reduce the transparency and credibility of the blockchain. Many skeptics believe Segwit makes on-chain scaling harder, and are convinced that increasing the block size is the best possible solution

The post Bitcoin Core 0.18.0 Bets on Segwit Adoption and Hints at Offline Tx Signing appeared first on Ethereum World News.

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Bitcoin Core Releases Software Upgrade With Full SegWit Support

The Bitcoin Core development team has released a much-anticipated software upgrade designed to help scale the  cryptocurrency network.

Version 0.16.0 of Bitcoin Core, the standard software client of the bitcoin network, adds full support for Segregated Witness (SegWit). Its release was presaged by a Github announcement earlier in February.

“Bitcoin Core 0.16.0 introduces full support for segwit in the wallet and user interfaces,” said a statement circulated Monday on a Linux Foundation mailing list.

The code is intended to solve bitcoin’s scalability obstacles. Bitcoin’s main protocol has a maximum block size of 1 megabyte, which restricts the volume and speed of transactions.

By separating signature and transactional data, SegWit reduces the “weight” of transactions, which creates more room in any given block. This does not increase the network’s block size limit, but it does increase the volume of possible transactions.

The removal of the signature information also resolves the problem of transaction malleability, which was previously a security vulnerability because transaction IDs could be altered. Likewise, this impeded the implementation of second-layer protocols such as the Lightning Network.

SegWit also introduces a new address format created by Bitcoin Core contributors Pieter Wuille and Greg Maxwell that provides a better user experience, facilitates the automatic support of SegWit and lowers transaction fees.

Introduced in November of 2016, SegWit has seen slow adoption amid the controversy over the block size limit.

Major crypto exchanges have recently moved to support SegWit, including GDAX and Bitfinex, however.

“SegWit provides not only an immediate benefit for users, but also a foundation for future bitcoin development,” Bitfinex said in a Medium post. “By supporting SegWit addresses, Bitfinex is tackling three of the biggest crypto-enthusiast concerns: transaction fees, transaction speed, and total network capacity.”

Bitcoin construction image via Shutterstock

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NO to Bitcoin SegWit2x – Litecoin Creator Charlie Lee is Against

The founder and creator of Litecoin [LTC], very respected cryptocurrency-community figure Charlie Lee – supporter of Bitcoin for a long time, via twitter has showcased his concerns related to SegWit2x for the pursuit of solution by a group of companies which are in change of BTC protocol with no user consensus:

“Miners and business cannot change Bitcoin without user consensus. So today, to show my disapproval, I’m adding [NO2X] to my name.”

First, the upgrade was suggested to increase the block size of Bitcoin by 2MB, followed up by the activation of the Bitcoin Core development Team’s scaling and transaction malleability solution SegWit2x (Segregated Witness) – by Barry Silbert-led Digital Currency group which followed as a solution to the Hong Kong agreement.

However, the majority of the Bitcoin community opposed the activation of SegWit2x, due to the lack of support from Bitcoin Core developers and users. Acknowledging the decline in the probability of the Bitcoin community agreeing to the SegWit2x proposal, the companies behind the movement proposed a hard fork execution in November, to create a separate Bitcoin-based Blockchain network, like Bitcoin Cash.

By many this event taking place is quite odd as the timing of the suggestions is the issue while a centralized group of businesses are trying to change the Bitcoin protocol without the agreement of BTC core developers, the open-source development community, the industry and users. Adding on that, the SegWit activation is still on its early phases of adopting while it has showed quite impact on the network. While only five percent are Segregated Witness enabled of the network, the block size decreased from 1MB to 0.86MB and the mempool from 150 mln bytes to lower than 10 mln bytes.

The substantial decline in the size of the Bitcoin mempool is especially important to consider, because the mempool is the holding area for unconfirmed Bitcoin transactions. For the past month, the size of the Bitcoin mempool has remained below 15 mln bytes, less than 10 percent of where it was a month ago.

Worthy to mention, Bitcoin pioneer and Blockstream CEO Adam Back in 2015, showed his support towards increasing the BTC block size. This represents that not all Core developers could be against increasing the Bitcoin block size.

But, it is vital to increase the Bitcoin block size when necessary. SegWit has already scaled the Bitcoin network at a similar rate, as a 2MB block size increase and still at five percent capacity. If it reaches 50 percent and 100 percent in the upcoming months, the Bitcoin Blockchain will scale even further.

From that it is easily concluded that there is need to let SegWit expand out and play out, and then when it is absolutely necessary, follow the idea of increasing the BTC block size. That is why it feels odd to implement an important update on the protocol when Segregated Witness was just implemented and is still in the progress of adoption.

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