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Segregated Witness (SegWit)

By CoinGecko | Updated on Mar 03, 2020
Formally "Segragated Witness (Consensus Layer)" or BIP141, Segwit removes digital signature data and moving it to the end of a transaction to free up capacity. Transactions are essentially split (or 'segregated'), into two segments: the original data segment and the signature (or 'witness') segment. The declared purpose of Segwit was to prevent nonintentional bitcoin transaction malleability, allow optional data transmission, and to bypass certain protocol restrictions (such as the block size limit)

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Related Terms

Testnet
Shorthand for "Test Network", testnets are staging areas for experimenting new blockchain features.
Hash
A hash function is an output code (unique and alphanumeric) that we obtain from an input string,
Consensus
Consensus is achieved in a blockchain system when all participants agree on the content of the next block that will be added onto the blockchain.
KYC (Know Your Costumer)
KYC stands for "Know Your Customer", a process for business entities are required to verify its clients and assessing them.
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