Segregated Witness Protocol

Segregated Witness or SegWit is a protocol upgrade that changed how transaction data is stored on the Bitcoin blockchain. By separating the witness data ⎊ the signature ⎊ from the transaction data, it effectively increased the block size capacity and fixed the issue of transaction malleability.

This improvement made it easier for developers to build layer-two solutions like the Lightning Network, which rely on secure transaction IDs. SegWit also reduced transaction fees for users by optimizing how data is processed.

It is a prime example of how protocol-level changes can enhance both the scalability and the security of a blockchain network. The implementation of SegWit was a major turning point in the evolution of Bitcoin's technical infrastructure.