Hello, in this lesson we are going to cover what segwit to x is in a previous lesson. I briefly mentioned it and I also mentioned that it stands for segregated witness and it ultimately comes down to gaming but let's learn the ins and outs of segway. So let's just talk about some of the history of it. So it was proposed as an upgrade to the core foundation of Bitcoin to help it scale So, the way it was proposed to help it scale and it helped it scale in two main ways, so the upgrade or the features or the upgrade to parts 3d, so one was code opti my zation so we have code optimization which alters how some data is stored to the network. The next parte value actually helps is it increases it increases the block size and the increases from one megabyte To megabyte and this would also enforce a timeline of about three months for this to be done.

So that's all well and good code optimization increases the block size, which allows for more transactions for less learn about what drives the desire to incubate ink incubate implement segregated witness or something else similar to it and also what doesn't drive people to want something like this implemented. So, let me change colors. So do's and don'ts essentially, the do's and don'ts. So first of all, Bitcoin is limited To the number of transactions it can process so, as the network gets larger, more users combined, more transactions are occurring this this obviously can become an issue. And as of as of July 2017, roughly one megabyte of transactions were occurring every minute for the obviously an issue because if one megabyte transactions are Every minute and the block size is a megabyte, we really do need to increase the block size to help make the network scale. So do you to this limit transactions take longer to approve, which obviously is bad because you want faster approval rights.

And that will ultimately get more users on them make the network better than alternatives. And this is due in times of heavy use, and I used to want to have to wait just because there's a bit more traffic going on LSA at a certain time of the day, a certain time of the week. I just want to know that you'll get there and you'll be fast. So users don't care about this. So they're not going to be understanding. So the limitation of space increases the average fee cost.

And if the average free cost is higher, then users are less likely to want to use the service. Obviously, I've covered in a separate video that you can actually have zero fees. Bobby, see having some or painting for a fee does have its advantages, like more than likely getting your transaction approved quicker. But there are disadvantages. And here's one increase And block size makes network no more costly. So increasing the block size does actually make each node more expensive, it's more costly.

So as node operators must store the entire tendency basically to do to this so it's due to the fact that node operators must store the entire copy of the block Chain as computer files, so there are advantages to something like segregated witness. And there are disadvantages. This is sort of like the history of why somebody would want to implement something like segregated witness. From here on out. I'm just gonna call it seg wit to x. So let's cover the basics behind this.

Now we've sort of covered the history and then the basic so the the basics. The basics are seg wit to x isn't actually the first proposal to aid in scaling, because users and developers have seen this issue for a while. But one of the most controversial aspects around this is it was not suggested or endorsed or endorsed by the Bitcoin Core team which is the main developer team, so they're the one that have sort of a big say in it and a lot of people go by what they say so because it wasn't endorsed or suggested by them, there's a lot of controversy around it. It It's not much of an evolution but a combo of existing ideas. So what are those ideas fundamentally, they segwit nothing but to act seg wit, which has helped formed segway to x. And segway it was officially for coast though this was officially proposed by a Bitcoin Core developer cord.

Peter why oil often the thing you pronounce his name and this will basically to you increase the volume of transactions that fit into each block without actually increasing the block size. So, transaction volume goes up without actually increasing the block size. So that's actually quite a cool thing. The other thing that is essentially part of this is block size increases. So combination of segway and block size increases would allow for significantly more transactions or block size increase simply increases the block size. It alternatives such as Bitcoin XT, write this down, bit.

Coin, XT and bit coin Bitcoin. On limited have come from this, but none of them have received the same level of support from the community to help them grow that hence why you generally don't hear about them. So have any of these things being connected? Well, yes, they have seg. wit was actually released, was released in November 2016, but is optional. So it doesn't enforce it on all of the users and all of the different mining pools, so it's optional requires mining pools to activate it.

And we're about segue to x To X has been deployed since then, actually I received an email I think yesterday or the day before, from one of the exchanges that I have Bitcoin with saying that they were talking more about segway to x and they were just saying the coins will be going over to the new Bitcoin two x i think they're calling it which is Bitcoin with seg wit to x. So, is everyone in support of this? Well, no, not everyone is in support of segway to x. So let's discuss some of the advocates and some of the people to post to it. So this the supporters they are follows they are most of the network's large mining pools to most large mining pools are in favor of this and are a Bitcoin startups because ultimately it helps their lives because they've got plenty to deal with just from a business perspective, forgetting about the actual technology of Bitcoin so it helps them and some big developers have also advocated search.

Gavin and drew Andreessen which is he they form a big core developers always quite a major developer for war about the the poses. So who is opposing it? There are some larger businesses. There are pros in it. There are many node operators and Bitcoin users are opposing it and most of the core developers responsible for Maintaining the software are also opposing it. So ultimately, there is a lot of stake, because some solution is required for the platform to scale and to be able to handle more transactions very fast.

And this issue won't just go away. Now, there will be issues like this in the next few months, the next year, in the next decade, because ultimately, scaling is always a big issue for businesses for any sort of platform and a platform such as this. They effectively trying to replace the current banking system that has had thousands of years to evolve into what it is, it's gonna be difficult. So these issues do need to be talked about and do need to be ironed out, whether it's segue to x, or some other alternative. That's it For covering what segwit to exit. I know we covered quite a lot in this lesson.

So if you have any questions, feel free to reach out or go through the video again to check out the different topics we covered. And as usual, thank you for watching, and I look forward to seeing you in my next lesson.