Segregated Witness (SegWit)

Segregated Witness (SegWit) is a Bitcoin upgrade that separates transaction signature data from the main transaction body. This separation reduces the size of each transaction, allowing more transactions to fit into a single block, which enhances network capacity and speeds up processing. Additionally, SegWit fixes certain security issues, enables the implementation of second-layer solutions like the Lightning Network, and improves scalability. Overall, SegWit helps make Bitcoin transactions more efficient, secure, and adaptable for future development.