What is the impact of SegWit on Bitcoin transaction fees?

3 answers

• Bocil NakalJun 23, 2024 · a year ago
  Segregated Witness (SegWit) is a protocol upgrade for Bitcoin that was implemented in 2017. It aims to solve the issue of transaction malleability and increase the block size limit without a hard fork. One of the main impacts of SegWit on Bitcoin transaction fees is the reduction in fees for transactions that utilize SegWit addresses. By separating the transaction signature data from the transaction data, SegWit allows for more transactions to be included in each block, effectively increasing the block capacity. This increased capacity results in lower competition for block space and subsequently lower fees for SegWit transactions.
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• Dilshad OmarMar 23, 2023 · 2 years ago
  With the implementation of SegWit, Bitcoin transaction fees have become more competitive. Transactions that utilize SegWit addresses are generally prioritized by miners due to their smaller size, which allows for more transactions to be included in a block. As a result, SegWit transactions often have lower fees compared to non-SegWit transactions. However, it's important to note that the impact of SegWit on transaction fees may vary depending on network congestion and other factors.
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• BtmdexNov 29, 2023 · 2 years ago
  Segregated Witness (SegWit) has had a significant impact on Bitcoin transaction fees. By increasing the block size limit and optimizing the transaction data structure, SegWit has effectively reduced the fees associated with Bitcoin transactions. This has made Bitcoin more accessible and affordable for users, especially during periods of high network congestion. However, it's worth mentioning that not all wallets and exchanges have fully adopted SegWit, so the impact on transaction fees may vary depending on the platform used. At BYDFi, we have implemented SegWit to provide our users with lower transaction fees and faster confirmations.
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