SegWitbased

SegWit, or Segregated Witness, is a software upgrade implemented in the Bitcoin network to improve transaction processing and scalability. It was activated on the Bitcoin blockchain on August 24, 2017, through a soft fork. The primary goal of SegWit is to separate the transaction signature data from the transaction data itself, allowing for more efficient use of block space and enabling the creation of more complex and secure transactions.

The SegWit upgrade introduces a new transaction format that includes a witness field, which contains the signature data. This separation allows for the creation of smaller transaction sizes, as the witness data can be omitted from the transaction data. This reduction in transaction size enables more transactions to be processed within the same block size, thereby increasing the network's throughput.

SegWit also introduces a new address format, known as Bech32, which is designed to be more secure and efficient than the previous address formats. Bech32 addresses are longer and more complex than traditional Bitcoin addresses, but they offer improved security features and compatibility with SegWit transactions.

The implementation of SegWit has been widely adopted by the Bitcoin community and has significantly contributed to the network's scalability and security. It has paved the way for further upgrades and innovations in the Bitcoin ecosystem, such as the Lightning Network, which aims to enable faster and cheaper transactions on the Bitcoin network.