Definition
SegWit (BIP 141) was activated on Bitcoin in August 2017. It moved witness (signature) data to a separate structure, allowing more transactions per block by introducing the concept of block weight (maximum 4 million weight units) instead of a simple 1 MB size limit.
SegWit also fixed the transaction malleability bug, enabling second-layer protocols like the Lightning Network. SegWit transactions use addresses starting with bc1 (bech32 format) and are more efficient, resulting in lower fees.
In Simple Terms
A 2017 upgrade that increased block capacity by separating signature data and enabled the Lightning Network.
SegWit is a term used in Bitcoin mining related to network & protocol.
Also known as: Segregated Witness, BIP 141.
SegWit (BIP 141) was activated on Bitcoin in August 2017. It moved witness (signature) data to a separate structure, allowing more transactions per block by introducing the concept of block weight (maximum 4 million weight units) instead of a simple 1 MB size limit.
SegWit also fixed the transaction malleability bug, enabling second-layer protocols like the Lightning Network. SegWit transactions use addresses starting with bc1 (bech32 format) and are more efficient, resulting in lower fees.
Understanding segwit is important for Bitcoin miners because it directly impacts mining operations, hardware selection, or profitability calculations. Whether you are a home miner running a Bitaxe or operating a larger ASIC setup, this concept helps inform better mining decisions.
Related terms: Soft Fork, Lightning Network, Taproot.