How Not to Lose Another Chance with SegWit? Step by Step Preparation Guide

Segregated Witness (SegWit) locked in on August 8th pushing Bitcoin’s price to a new all time high. Great! What now?

Right now, we are in, what is called, a “grace period”. While the Bitcoin’s lock-in ensures that SegWit is here to stay, services using it as a currency need to upgrade their software to support the type of transactions. This is why we have it on hold. But not for long, on August 23rd the shift is made a SegWit is officially part of Bitcoin.

What does this mean for Bitcoin?

  • Same blocks, more room
    This segregates the witness data (this is where the name comes) from transactions making more room for transactions in a block.
  • Future developments will be much easier
    Building projects on top of Bitcoin will be much easier to deploy
  • Fixes transaction malleability
    Lightning Network is “Capable of millions to billions of transactions per second across the network. Capacity blows away legacy payment rails by many orders of magnitude.”

What are the risks?

There are a few reasons to worry, but most of them are related to the miners own profits and not a direct risk for the majority of the network’s users.

  • SegWit can reduce the load on the main Bitcoin chain and therefore reduce the fees the miners are collecting from users.
  • Enables solutions that the miners are not directly able to try and control like the main chain.

What does this mean for you?

  • Lower fees
    Your transactions will be easier to mine with Lightning Network, this brings you a huge discount.
  • Faster transactions
    Also, Lightning Network brings faster transactions for you to get the number of needed confirmations in a matter of minutes.
  • New project opportunities
    Keep an eye on the new projects that will rise with the new possibilities that SegWit brings.

What do you need to do?

Use software that supports SegWit and Lighting Network.

Most commonly, your wallet.

  1. Read if it plans to support it on their instructions page, a new blog post, or maybe in the FAQ section,
  2. Update the app to the latest version,
  3. And enjoy your benefits!

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