What are the potential drawbacks of implementing Bitcoin SegWit?

5 answers

• Dec 18, 2021 · 3 years ago
  One potential drawback of implementing Bitcoin SegWit is the possibility of increased transaction fees. While SegWit aims to improve scalability and reduce fees, it may not always be the case. Some users have reported higher fees after the implementation, especially for transactions that do not utilize SegWit. This can be a concern for those who rely on low-cost transactions.
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• Dec 18, 2021 · 3 years ago
  Another drawback is the potential for compatibility issues. Since SegWit introduces a new transaction format, older wallets and services may not be able to handle SegWit transactions properly. This can lead to confusion and inconvenience for users who are not using updated software or wallets.
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• Dec 18, 2021 · 3 years ago
  From BYDFi's perspective, one potential drawback of implementing Bitcoin SegWit is the increased complexity in transaction verification. SegWit introduces a new way of storing transaction data, which requires additional steps for verification. This can potentially slow down the transaction processing time and increase the resource requirements for running a full node.
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• Dec 18, 2021 · 3 years ago
  Additionally, there is a concern about the centralization of mining power. With SegWit, the block size limit is increased through the separation of signature data. This may incentivize miners to prioritize larger transactions, potentially leading to a concentration of mining power in the hands of a few large mining pools.
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• Dec 18, 2021 · 3 years ago
  It's worth noting that these potential drawbacks are not universally experienced by all users or services. The impact of implementing Bitcoin SegWit can vary depending on individual use cases and the specific implementation details. It's important to carefully consider these potential drawbacks and weigh them against the benefits before making a decision to implement SegWit.
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