How does segwit affect the transaction fees in the bitcoin network?

3 answers

• Janki DeviJun 08, 2024 · a year ago
  Segwit, short for Segregated Witness, is a protocol upgrade implemented in the Bitcoin network to address the scalability issue. By separating the transaction signature data from the transaction data, segwit reduces the size of each transaction, allowing more transactions to be included in a block. This increased block capacity helps alleviate the congestion in the network, leading to lower transaction fees. So, in general, segwit has a positive impact on reducing transaction fees in the Bitcoin network.
  509

  255
• objetoraSep 22, 2021 · 4 years ago
  Segwit is like a magic wand that makes transaction fees disappear! Okay, maybe not disappear completely, but it definitely helps in reducing them. By optimizing the way transaction data is stored in blocks, segwit allows more transactions to fit in a single block. This means that miners can include more transactions in their blocks, resulting in a higher competition among transactions. And when there's more competition, transaction fees tend to go down. So, thanks to segwit, you can enjoy lower transaction fees and save some bucks when sending or receiving bitcoin.
  571

  191
• PaprykAug 02, 2022 · 3 years ago
  Segwit, which stands for Segregated Witness, is a protocol upgrade that was activated on the Bitcoin network in August 2017. It introduced a new way of storing transaction data, separating the signature information from the transaction itself. This optimization allows more transactions to be included in a block, which in turn reduces the demand for block space. As a result, transaction fees tend to decrease as the network becomes less congested. So, if you're looking to save on transaction fees, make sure to use a wallet or exchange that supports segwit addresses.
  570

  143