Here are the steps one needs to go through to actually benefit from SegWit:
- One needs a wallet or an account supporting SegWit
- One needs to generate new SegWit addresses
- One needs to receive bitcoins to the new SegWit address
- When spending those new SegWit funds, one can finally get a discount on the fee spent.
I believe it will take many weeks until laymen will experience any lower fees due to SegWit.
Devices like Trezor benefits from SegWit as the so-called quadratic hashing cost has been replaced with a linear hashing cost (meaning less CPU and memory is needed to process heavy transactions). However, bear in mind that this has only been solved for SegWit inputs, "old" funds are still as expensive as always to spend. (Bitcoin Cash has actually solved the quadratic hashing cost for all new transactions).
Then there is the mallability fix, which allows for Lightning. Remember that the advantage of Bitcoins is the network effect; the lightning network starts from scratch. I believe it will take years until Lghtning will get more useful than any other altcoin.
All in all, I'm not very much impressed with SegWit. I do believe we need SegWit2X for Bitcoin to be useful again. With the current fee levels, Bitcoin payments is only competitive to Fiat payments in some very few usecases, including bigger cross-border transactions and criminal use cases. That's not the Bitcoin I signed up for.
superb explanation!
Excellent post. This morning I decided to transfer some bitcoin to my exchange so I can invest in some more BCC and Dash.... well, firstly I was HORRIFIED by the transaction cost (at least 700% more than I have ever been asked for) and secondly three hours later not one confirmation yet. Viva Segwit Viva.
look my post about waves
https://steemit.com/cryptocurrency/@superpako/waves-plataform-and-lease-cryptocurrency
Yeah once you realize how much Bitcoin sucks in terms of slow transaction time and ridiculous fees then you realize that other stuff like Bitcoin Cash is gonna overtake it in the long run. I experimented with Dash and also had high transaction fees so in my own opinion Bitcoin Cash (BCH) to the moon!
The reason I was moving BTC was to stock up on some BCC .... But this manipulating the EDA is starting to get on my nerves. Really and truly. Both sides now seem like farkwits {end of rant}....Will decide over the weekend which wat to go.
That still remains a mirage folks, Bitcoin Cash would grow as expected but with the leap Bitcoin has that would just wishful thinking on your part.
It's all a con.... Blockstream want to own BTC. These transaction fees are 'desensitisation' ..so it becomes the norm. Lightening Network... well good luck.
While it may not be a scam in your opinion, it could be considered spam. Spam is not appreciated by the community and could be flagged or may result in action from the cheetah bot..
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Haha, first time seeing a comment getting that much up rewards. Between, I was wondering that does this segwit thing create another Bitcoin type like that BCC Bitcoin on 1st August. Please pardon me for my terms used, I am quite noob when it comes to the details of Bitcoin.
I'm quite surprised myself, wish my posts had received the same kind of upvotes :-) Perhaps my posts are too long and tedious ...
Regarding forks, I've written a post on the subject: Bitcoin Fork for Dummies
Segwit will not create another bitcoin type, but in November there may be a fork between the SegWit2X-supporters and the Bitcoin Core supporters. Also, if it wasn't for the SegWit2X initiative, we could have had a chain split also at the 1st of August (due to the BIP-148-crowd, wanting to force through SegWit against the will of the miners).
With the Bitcoin Cash case, the split was very clean - with so-called "replay protection" and different branding. The problem with BIP-148 and SegWit2X vs Core is that both sides want to keep the "bitcoin" brand. It may be messy.
Hey, thanks for all this explanation. I will read your article for more details.
just when I started to figure out BTC and get comfortable now I have to worry about segwit! Like, you need to have some serious organization skills to keep up with all the changes, wallets, coins, exchanges, private keys... holy smokes man
Nice update
I like your post but I am not so impressed with segwit. It cames out today that there is some bug and we have 24 hours confirmation time and higher fees.
I'm also not impressed with SegWit, but I'm not aware of the said bug, do you have any sources?
Extraordinary long confirmation time and high fees recently has been due to hashpower "defecting" to mine on the Bitcoin Cash chain - possibly combined with a spam attack. Things are already back to normal now, over the next few days there will be low fees and fast confirmations in the Bitcoin network, and this is not at all related to SegWit.
When will LTC get to 70? 100?
I think by the end of the year we'll see 100.
My hypothesis is that Litecoin is being price manipulated to Bitcoin like real gold silver which is a 1300/20 i.e. 65x ratio. So I think Litecoin will go to 70 when Bitcoin is able to hold steady at 4550 for a while, and it will go to 100 when Bitcoin is able to hold steady at $6500. Bitcoin is almost at 4550 now and if it can maintain that high through November Segwit2x fork uncertainty (not likely) maybe afterwards then I think Litecoin will finally go up. Just my own opinion not financial advice.
interesting theory
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