What is SegWit?

Segwit is short for Segregated Witness and relates to Bitcoin blockchain signatures. Segwit is a clever idea to raise the capacity of the Bitcoin network without changing the underlying process.

A member of the Bitcoin team (Pieter Wuille) looked at the data related to the signatures in a Bitcoin transaction and realised that some of the data could be omitted without affecting the security of the Bitcoin network.

In removing some of this signature data, Bitcoin transactions would become smaller, therefore allowing a transaction capacity increase per block.