Steemit Crypto Academy Week 3: Segwit Bitcoin Network or Legacy Bitcoin Network,My choice and why, Homework Task by @gbenga
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Hello Steemit Crypto Academy Community
Thank you very much to @gbenga for giving homework to us beginners.
[THE BITCOIN SEGWIT NETWORK]
Source
SegWit is a simple and creative solution to a major problem in the Bitcoin protocol. Bitcoin transactions are faster. SegWit makes the Bitcoin blockchain lighter. This allows more transactions to be processed without increasing the overall Bitcoin blockchain size.
Blockchain Basics
Bitcoin is a large network of thousands of computers called nodes. Each node keeps full records of every Bitcoin transaction that has ever been made. These records are called blockchain.
Most of the work involved in processing new transactions is done by special nodes called miners. Users pay miners transaction fees for the work they do. New transactions can only be added to the blockchain after miners have entered them into groups of transactions called blocks. Each block on the Bitcoin blockchain contains 1MB of transaction information.
It can take about 10 minutes for the network to process a block of transactions, but it can take longer. The Bitcoin network can process between 3-7 transactions per second (Tx / s). However, this can slow down a lot when the network is busy.
Now I will use two examples to show you how simple Bitcoin transactions are.
The first will be standard Bitcoin transactions.
The second is a transaction where one user takes advantage of transaction malleability to steal Bitcoins from other users.
Next, I'm going to tell you about scalability and lightning networking. I'll start with scalability.
So, what is SegWit's scalability?
SegWit Bitcoin scalability
First, let me explain what scalability is. Scalability is the network's ability to process a large number of transactions without the transaction speed going down. If the network is scalable, it will be able to process transactions as fast, or even faster, as they get bigger. Unfortunately, most cryptocurrency transactions process the slower the bigger they get.
Cryptocurrencies have scalability issues because transactions are processed by consensus. As I mentioned earlier, more than half of the nodes on the Bitcoin network have to agree that transactions are valid before they can be added to the blockchain. The more nodes there are on the network, the longer it will take to reach an agreement or consensus.
The Bitcoin community has been debating various ways to measure the network for a long time. The problem is getting worse as the platform becomes more popular so that time runs out to find a solution. When Pieter Wuille created Bitcoin SegWit, he accidentally increased the scalability of the network too! Witness data is used to take 65% of each Bitcoin block. By deleting witness data, the SegWit Bitcoin block now has room for more transaction information.
Each block now has a defined block weight capped at 4MB. Block weight is a combination of 1MB of information stored on the main blockchain and witness data stored on the sidechain. A separate witness allows the network to process more transactions without changing the overall size of the Bitcoin blockchain.
So, if someone asks you, "what is SegWit scalability?" You can tell them it's a way of processing more transactions on the Bitcoin network. It makes the network lighter by removing witness data from transactions without affecting the size of the Bitcoin blockchain.
[LEGACY BITCOIN NETWORK]
Legacy Bitcoin network is a payment network that operates on a cryptographic protocol. Users send and receive bitcoins, by broadcasting digitally signed messages to the network using bitcoin cryptocurrency wallet software. Transactions are recorded into a distributed and replicated public database known as blockchain, which is accomplished by a proof of work system called mining.
Networks need a structure for sharing transactions. An ad hoc centralized network is sufficient.
A rough overview of the process for mining bitcoin involves:
1. New transactions are broadcast to all nodes.
2. Each mining node collects new transactions into blocks.
3. Each mining node works to find the proof-of-work code for its block.
4. When a node finds a proof-of-work, it broadcasts a block to all nodes.
5. The acceptance node validates the transactions it has and only accepts if all are valid.
6. Nodes declare their acceptance by moving to work on the next block, concatenating the hashes of the received blocks.
Data on blockchain
While it is possible to store any digital file on the blockchain, the larger the transaction size, the greater the associated costs. Various items have been embedded, including child pornography URLs, ASCII art images from Ben Bernanke, materials from Wikileaks cables, prayers from bitcoin miners, and the original bitcoin whitepaper.
HERE I CHOSE THE BITCOIN SEGWIT NETWORK.
Because
1.SegWit is a simple and creative solution to a major problem in the Bitcoin protocol.
2. If Bitcoin is to serve a network of millions of people, then Bitcoin needs to solve the scalability problem. SegWit helps to turn scalability projects like lightning networks into reality.
3. Faster Bitcoin transactions. SegWit makes the Bitcoin blockchain lighter. This allows more transactions to be processed without increasing the overall Bitcoin blockchain size.
4. Bitcoin transactions are cheaper. Higher transaction speeds mean lower transaction fees. Bitcoin transaction fees can be so high that any changes that bring them down should be welcomed by the community.
This is all about my Homework Assignment given by @gbenga
Hello @gbenga
If there is a need for correction, please let me know.
Thanks
Hello, Copy-paste of any form isn't good for the community and for you at all. This post is plagiarised and I do not support plagiarized posts.
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