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What Is SegWit and How Did It Fundamentally Change the Transaction Structure?

SegWit separated the transaction signature (witness) from the main data, fixing malleability and increasing block capacity.
Greeks.Live19.11.25

What Is SegWit and How Did It Fundamentally Change the Transaction Structure?

Segregated Witness (SegWit) is a Bitcoin soft fork upgrade implemented to address transaction malleability and increase block capacity. It fundamentally changed the transaction structure by "segregating" or separating the transaction's witness (signature) data from the main transaction data.

This separation meant the signature data was no longer included in the calculation of the Transaction ID (TXID), resolving the malleability issue. It also introduced the concept of "witness discount" to effectively increase the number of transactions per block.

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