Topic: My 2 big reasons why we should use SegWit addresses instead of Legacy addresses - page 2. (Read 380 times)

in as much as you want to pass a very helpful information, you should know that cross posting is not accepted.

Here is your cross posting on a local board : https://bitcointalksearch.org/topic/my-2-big-reasons-why-we-should-use-segwit-addresses-instead-of-legacy-addresses-5501147

Highly ranked members/mod(achow101) would decide from here.

My apologies. I thought only translated post on local boards are exempted as the rule states. I never knew same post written in plain English can also be posted both on local and other boards.

In a more clearer way SegWit transactions aren’t necessarily smaller in size than legacy transactions. The both address format transactions are same size in byte, the difference is that the way the transaction is calculated is changed from size to weight, it is this SegWit transactions that is smaller in weight than legacy becaus legacy transactions is measured to weigh 4 units/byte and segwit weighs 1 unit/byte, and that’s why the corresponding transaction fees are smaller.

The data too is not removed or separated entirely from the transaction like some people mistakenly assume. It is just moved to witness which is a new field in segwit formats

SegWit (Segregated Witness) was introduced in 2017 for Bitcoin. It was activated as a soft fork according to Bitcoin Improvement Proposal 148 (BIP 148), which enforced SegWit to be activated. SegWit aimed to improve scalability, reduce transaction fees, and fix transaction malleability issues, in addition to more smaller benefits.

Let’s have a look today at why SegWit is a good update for Bitcoin because Segregated Witness (SegWit) addresses for Bitcoin are offering several advantages over legacy addresses:


Native and nested SegWit

Today, we know about native and nested SegWit addresses. While nested SegWit only offers few advantages, native SegWit is what was introduced in 2017, giving us full benefits from SegWit transactions:

________	__________________________	_______________________________________________________________________________ _____________________
1…	Legacy-Address	P2PKH (pay to public key hash)
3…	Multisignature-Address	P2SH (pay to script hash)
________	__________________________	_______________________________________________________________________________ _____________________
3…	nested SegWit-Address	P2WPKH-P2SH (pay to witness public key hash - pay to script hash) / P2WSH-P2SH (pay to witness script hash - pay to script hash)
________	__________________________	_______________________________________________________________________________ _____________________
bc1q…	native SegWit-Address (bech32)	P2WPKH-bech32 (pay to witness public key hash) / P2WSH-bech32 (pay to witness script hash)
bc1p…	Taproot-Address	P2TR-bech32m (pay to tap root)

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1. SegWit transaction are cheapest

SegWit offers us compared to Legacy or nested SegWit really low transaction fees and it will reduce our costs paid for transaction fees a lot.
Here’s an overview how large transactions of each type are:  

Type	|Input  vbyte	|Output vbyte	|transaction vbyte
Taproot	|57,5	|43	|111
Native SegWit	|68	|31	|109.5
Nested SegWit	|93	|32	|134
Nested SegWit	|140	|34	|192

For each input, we will save additional transaction fees.

SegWit transactions are simply smaller in size compared to legacy transactions because all witness data (signatures) is separated from transaction data. As a result, we get a lower fee per transaction vbyte.

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2. Increased Block Capacity

Bitcoin has a limit of transactions in terms of transaction size for each Block: a limited number of transactions can only be fitted into each Bitcoin block, limiting Bitcoin’s capacity in terms of  transaction size per new block.  
SegWit allows more transactions to be fitted into each block. By separating all witness data, SegWit effectively decreases size limits for each transaction and effectively increases Bitcoin’s block size limit, which helps to process more transactions per block.  
So, SegWit actively helps to reduce congestion in Bitcoin’s mempool.

Overall, using SegWit addresses will help us to reduce transaction costs, have a better network performance and future-proofing for additional improvements and features for Bitcoin.


Which ones are your favorite reasons to use Bitcoin native SegWit addresses?

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Sources

Pay-to-taproot (P2TR) transaction fee
Why people should be using SegWit addresses
Minimizing bitcoin transaction fee
Mempool empty! Use this opportunity to Consolidate your small inputs!