How Did SegWit Impact the Development of Layer 2 Solutions like the Lightning Network? ▴ Learn

How Did SegWit Impact the Development of Layer 2 Solutions like the Lightning Network?

SegWit was a foundational necessity for the safe and scalable development of Layer 2 solutions like the Lightning Network (LN). By fixing transaction malleability, SegWit ensured that the TXID of the funding and penalty transactions used in LN channels could not be altered by a third party.

This guarantee is critical because LN relies on the exact, pre-signed TXIDs to enforce its penalty mechanism and close channels safely, making the entire network architecture possible.

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