What is Bitcoin Segregation (Bitcoin Strange)?

08/14/2023 16:45 • Digital Disruptors • 64 views

What is Bitcoin Segregation? Bitcoin is the world’s largest cryptocurrency with a market value of up to $3 trillion. However, in 2017, with the development of decentralized finance, its development has become an area that cannot be ignored. The Bitcoin network has always had security issues and various problems: how does it ensure the security of user funds? Does it affect user experience? Why is Bitcoin segregation necessary? All of this stems from unique research on the Bitcoin protocol, and we know that Bitcoin is a peer-to-peer electronic cash system.

Although this technology allows people to exchange Bitcoin in a frictionless manner, Bitcoin also has many differences. Since transactions occur on the blockchain, Bitcoin is considered “transparent” and allows users to transfer or pay through wallets of their choice, rather than sending their money to exchanges to process transactions. What is Bitcoin segregation? According to CoinMetrics, “Bitcoin forks are usually used to record hashing, timestamps, and other data of all transactions.” Although there is no other way to achieve this goal (such as on-chain), in Bitcoin, this mechanism provides better privacy. “Bitcoin segregation” refers to when miners decide whether to accept Bitcoin, they must connect them to the main node and can only continue transmission when these devices are running properly. If a mining pool has enough information to prove its participation in the Bitcoin network, it needs to ensure that they can work simultaneously. To make this process easier and more efficient, Bitcoin also requires miners to maintain a certain level of anonymity in order to obtain rewards from situations unrelated to hacking and theft; for miners who cannot access this service, this is an additional risk because they cannot control their own computer resources. So it is necessary to take measures to prevent malicious actors from taking advantage of this opportunity to promote network growth.