diff --git a/appdx-segwit.asciidoc b/appdx-segwit.asciidoc index ecac875a..db9fb98d 100644 --- a/appdx-segwit.asciidoc +++ b/appdx-segwit.asciidoc @@ -344,6 +344,6 @@ Transaction A fee: 8,130 satoshi Transaction B fee: 12,045 satoshi -Both transactions are less expensive when segregated witness is implemented. But comparing the costs between the two transactions, we see that before segregated witness, the fee is higher for the transaction that has a negative Net-new-UTXO. After Segregated Witness, the transaction fees align with the incentive to minimize new UTXO creation, by not inadvertently penalizing transactions with many inputs. +Both transactions are less expensive when segregated witness is implemented. But comparing the costs between the two transactions, we see that before Segregated Witness, the fee is higher for the transaction that has a negative Net-new-UTXO. After Segregated Witness, the transaction fees align with the incentive to minimize new UTXO creation, by not inadvertently penalizing transactions with many inputs. Segregated Witness therefore has two main effects on the fees paid by bitcoin users. Firstly, segwit reduces the overall cost of transactions by discounting witness data and increasing the capacity of the bitcoin blockchain. Secondly, segwit’s discount on witness data correcting a misalignment of incentives that may have inadvertently created more bloat in the UTXO set.