From b40971339dcdb8ccc0a4922cbcd7f2ee7ca65d72 Mon Sep 17 00:00:00 2001 From: "judymcconville@roadrunner.com" Date: Tue, 2 May 2017 13:51:44 -0700 Subject: [PATCH] Edited appdx-segwit.asciidoc with Atlas code editor --- appdx-segwit.asciidoc | 4 ++-- 1 file changed, 2 insertions(+), 2 deletions(-) diff --git a/appdx-segwit.asciidoc b/appdx-segwit.asciidoc index db9fb98d..0a1a3019 100644 --- a/appdx-segwit.asciidoc +++ b/appdx-segwit.asciidoc @@ -2,7 +2,7 @@ [appendix] == Segregated Witness -Segregated Witness (segwit) is an upgrade to the bitcoin consensus rules and network protocol, scheduled for implementation in the second half of 2016. +((("segwit (Segregated Witness)", id="segwit16")))Segregated Witness (segwit) is an upgrade to the bitcoin consensus rules and network protocol, scheduled for implementation in the second half of 2016. In cryptography, the term "witness" is used to describe a solution to a cryptographic puzzle. In bitcoin terms, the witness satisfies a cryptographic condition placed on a unspent transaction output (UTXO). @@ -346,4 +346,4 @@ 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. -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. +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.((("", startref="segwit16")))