The debate about the speed, costs and scalability of transactions on the Bitcoin blockchain is not diminishing. Bitcoin (BTC) is repeatedly confronted with it and declared obsolete and even dead . But the largest open source project does not stop in development and always finds solutions to minimize certain technical limits on the Bitcoin blockchain. The last big innovation at BTC was Segregated Witness (SegWit) in August 2017, which was initiated for the first time by a soft fork of the network.
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Bitcoin SegWit helps to more scaling
Since the update, more and more Bitcoin transactions have been processed with SegWit. A large part still takes place without SegWit. But a few days ago there was another milestone: Over 50% of all Bitcoin transactions are now carried out with SegWit.
SegWit allows Bitcoin transactions to be carried out, which are less data intensive than classic BTC transactions. This allows the current limit of 1MB per block to be extended. A block, which is created every 10 minutes, can currently process a maximum of around 2,500 transactions.
SegWit can quadruple Bitcoin transactions
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If all Bitcoin transactions were to take place with SegWit, then the maximum number of transactions would theoretically be 4 times higher – i.e. 10,000 transactions per block. That would increase the transactions per second (TPS) from 4 to 16.
Due to the current share of 50.73% in SegWit transactions, Bitcoin has reached approximately twice the capacity compared to classic transactions. This automatically leads to cheaper and faster BTC transactions.
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Bitcoin SegWit in the midst of adoption
When it was introduced, SegWit was quickly supported as a transaction standard by all major wallets (such as Trezor or Ledger). But many crypto exchanges do not use SegWit to this day, as it apparently takes more time than expected due to development and security tests. But it is foreseeable that the integration on the part of the crypto exchanges will definitely come in the future.
Looking at the historical trends for the use of SegWit, it took the network 14 months after its introduction in August 2017 to reach a high of 48.5% of all Bitcoin transactions with SegWit. Since then, SegWit usage has stagnated somewhat and has moved between 41% and 48%. Now a new all-time high has been reached.
The future of Bitcoin is being written now. We are all there live and can see and test the results immediately. A number of BTC updates will follow in the future. Since Bitcoin is currently the largest and most secure network, certain innovations take much longer than with Altcoins. There is just too much at stake.
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