Segregated Witness (SegWit)
By CoinGecko | Updated on Mar 03, 2020
Formally "Segragated Witness (Consensus Layer)" or BIP141, Segwit removes digital signature data and moving it to the end of a transaction to free up capacity. Transactions are essentially split (or 'segregated'), into two segments: the original data segment and the signature (or 'witness') segment. The declared purpose of Segwit was to prevent nonintentional bitcoin transaction malleability, allow optional data transmission, and to bypass certain protocol restrictions (such as the block size limit)
Related Terms
Decryption
The process of decrypting data that was previously encrypted (made unreable) back to a readable form.
Pump and Dump Scheme
A market manipulation method to drive up the price of an asset before profiting by driving it back down.
Crowdsale
This type of auction has a fixed price per token that is sold on a first-come-first-serve basis.
Frontrun
To intercept a particularly large AMM buy order for the purpose of purchasing an reselling the assets back to the buyer before the order transaction is mind on the blockchain.
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