How Does the ‘SegWit’ Upgrade Affect the Calculation of Block Space?
SegWit (Segregated Witness) changed the block size limit to a 'block weight' limit of 4 million units. It segregated the witness data (digital signatures) from the transaction data.
By counting witness data as 1/4 the weight of regular data, SegWit effectively increased the number of transactions that can fit in a block, thus increasing the effective block space.
Glossar
Upgrade
Iteration ⎊ An upgrade, within cryptocurrency, options trading, and financial derivatives, signifies a protocol or system evolution, often implemented through hard forks or soft forks in blockchain technology, impacting consensus mechanisms and smart contract functionality.
SegWit
Protocol ⎊ SegWit, or Segregated Witness, is a pivotal protocol upgrade implemented as a soft fork, fundamentally restructuring the data within a blockchain transaction block.