The percentage of bitcoin transactions using SegWit doubled

The percentage of SegWit transactions in the bitcoin network in the last few months, according to segwit.party, was at the level of 10-15%. In recent weeks, several key players in the bitcoin ecosystem (in particular Bitfinex and Coinbase) have included SegWit support, which led to an increase in the volume of SegWit transactions in each new block to 30% in less than two days. In addition, the latest version of Bitcoin Core, the bitcoin reference software, allowed users of wallets to create SegWit addresses for receiving payments. And, as more exchanges, wallets services and other users of the system accept SegWit, the total network bandwidth will only grow.

SegWit is an improved method for processing bitcoin transactions by making more efficient use of block space and correcting the malleability bug, which increases the network bandwidth.

On the other hand, large blocks mean an increase in the size of the complete node (nodes), which can be negatively reflected at the decentralization level of the network (although studies have shown that this should not become a serious problem in the long run and allow everyone to launch their own full node).

It should also be noted that increased bandwidth is likely to help relieve congestion in the short term, as the user base of bitcoin continues to grow.

A more important aspect of SegWit in the long term is to correct the plasticity error of transactions, which will allow using a more efficient implementation of the Lightning Network (LN). It is expected that this second level protocol will largely be able to solve the problem of scaling bitcoin this year already. With the introduction of LN, bitocoins will be limited to the number of users on the network, rather than how often they want to make transactions.

The nature of the bitcoin network makes it difficult to understand which companies exert the greatest influence on the recognition of SegWit, but the size of the American Coinbase (whose CEO claims that it stores about 10% of all the bitcoins in circulation) indicates that the company is now playing a decisive role in this. It is assumed that Blockchain, the most popular web wallet, accounting for about 40% of all bitcoin-transactions, integrates SegWit before the end of March this year.