SegWit

Segregated Witness (SegWit) is a protocol upgrade for the Bitcoin network that was implemented in 2017. SegWit separates (or segregates) the signature data (witness) from the transaction data in a block, allowing more transactions to fit within a single block. This effectively increases Bitcoin's block size limit without requiring a hard fork. SegWit also fixes the "transaction malleability" issue, enabling the implementation of second-layer solutions like the Lightning Network. Example: SegWit transactions reduce the size of each transaction, allowing Bitcoin to process more transactions per block, which leads to lower fees and faster processing times.