SegWit


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SegWit

(SEGregated WITness) A technique that improves the efficiency of a cryptocurrency network. Used in the Litecoin network and adopted by Bitcoin in August 2017, SegWit moves the digital signatures (the witnesses) to the end of the block, which is also larger (up to 4MB). As a result, blockchain data can be downloaded faster for validators that are not verifying transaction integrity. SegWit is a "soft fork," which means that service providers and digital wallets do not have to comply immediately. SegWit2x is an additional approach that proposed splitting Bitcoin after SegWit but was cancelled in November 2017. See Bitcoin, Bitcoin Cash and blockchain.
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SegWit became fully supported with the release of Bitcoin Core 0.16, including full bech32 addresses.
Fully understanding SegWit involves some complex Bitcoin internals, but in brief, it separates the transaction cryptographic proof from the transaction details itself.
SegWit tends to be favored by Bitcoin programmers as a more "democratic" solution.
SegWit2x proposes that should 80% of the Bitcoin network adopt SegWit, then within 6 months, the Blockchain block size will be "hard-forked" to 2MB.
So the bitcoin community rejoiced when Coinbase tweeted plans to launch SegWit support for all their customers by next week.
The August 2017 (https://elementsproject.org/elements/segregated-witness/) SegWit  upgrade puts Bitcoin on a path of both on-chain and off-chain scaling.
Litecoin has SegWit and lightning network fully implemented and can handle over 50 transactions per second.
However, bitcoin will use a solution called (http://www.ibtimes.com/segwit-ushers-future-bitcoin-2581975) SegWit to boost scalability over the next year or more.
SegWit paved the way for solutions such as the (https://lightning.engineering/) Lightning Network , which creates a layer for bitcoin transactions to zip across the world without waiting in the main chain line.
"SegWit is actually something we've been waiting years for,"  Elizabeth Stark, CEO and co-founder of (http://lightning.community/) Lightning Labs , told International Business Times.
Now SegWit is fixing one of bitcoin's oldest bugs plus making the blockchain network faster, stronger, and easier to build up with more diverse solutions.
Lombrozo thinks SegWit will allow for exponential scaling.