Segregated Witness – or SegWit in short – reduced the transaction data's size to allow for faster transactions, better scalability and decreased fees
What is SegWit?
SegWit stands for "segregated witness" and is a technique that reduces bitcoin transaction fees. Segwit moves all of the signature data in a bitcoin block to the end, lumping the signatures of all transactions together. This allows more transactions to fit in the same amount of space, while maintaining the security of the bitcoin blockchain. The most important benefit of more transactions per block is that the transaction cost of each transaction goes down compared to legacy transactions.
SegWit vs. Native SegWit
The latest update in address formats is native SegWit, sometimes referred to as bech32. It is even more weight-efficient than its predecessor. This entails having a transaction speed that is even faster than SegWit transactions, improved scalability, and even reduced transaction fees. To add to this, bech32 has better error-detection and makes addresses lowercase only for better readability. This is why it's the most popular option… if present.
The only drawback of bech32 is that not all significant platforms now support this address format. Although transfers between Legacy, SegWit, and Native SegWit addresses are completely compatible, quite a few exchanges and wallet providers still do not accept adds sending Bitcoin to a bc. Thus, whenever you establish a new account on Ledger Live you will be presented with both the possibility of adding a Native SegWit and/or a SegWit address.
What is SegWit? SegWit vs. Native SegWit - Hopefully, this article can help you to get some knowledge.
