What is Segregated Witness (SegWit)? How do you know you’re using SegWit? SegWit fixes transaction malleability and enables further upgrades towards Bitcoin smart contracts. Can transaction malleability lead to denial-of-service (DoS) attacks? Does SegWit put witness data in a different block? Did SegWit change transaction validation? versus? Are there any security risks of invalid blocks?
CORRECTION: At ~2:07, I stated the incorrect BIP number for the Bech32 address format, which should be BIP173. BIP176 is about "bits" denomination. github.com/bitcoin/bips/blob/...
More on SegWit: bitcoincore.org/en/2016/01/26...
Chapters
0:00 What is Segregated Witness (SegWit)?
3:06 How would you know that you are using Segregated Witness?
5:20 What type of malleability and scalability issues can Bitcoin present without using Segregated Witness?
7:17 Why is nobody exploiting the malleability bug in Bitcoin or Bitcoin Cash, if you can interject a change with the signatures, pay a higher fee, and broadcast it again?
8:22 If we are making two different blocks, a transaction and witness block, are they still the same size?
9:28 How is the witness part included in add-on blocks and verified in the coinbase transaction?
10:53 SegWit security. Are there any concerns about the potential increase in the number of invalid blocks propagated, if not enough people are storing the unhashed signature data on their nodes?
11:59 If I don't store signature data on my node, could I not verify previous transactions? If that is the case, should large transactions remain off SegWit or the Lightning Network, insofar as you not personally storing signature data?
These questions are from the MOOC 9.3 and 9.5 sessions which took place on March 2nd and March 16th, 2018 respectively. Andreas is a teaching fellow with the University of Nicosia. The first course in their Master of Science in Digital Currency degree, DFIN-511: Introduction to Digital Currencies, is offered for free as an open enrollment MOOC course to anyone interested in learning about the fundamental principles.
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