Ethereum: Why are segwit transactions cheaper than legacy transactions?

Ethereum: Why are segregated witnesses (segwit) cheaper than inherited transactions

In the world of crypto currencies, transparency and efficiency are crucial for a successful system of payment through the Internet. Two popular cryptocurrencies that aim to achieve these goals are Ethereum and Bitcoin, and each with its own transaction fees. One of the main differences between these two crypto currencies consists in their implementation: segregated witnesses (segwit) compared to inherited (non -seagged) transactions.

What is Segwit?

Segwit is a modified version of the Bitcoin Lightning Network that enables more effective and more profitable transactions. The basic idea behind Segwit is to reduce the number of transactions needed to transfer funds, reducing tax. This innovation was introduced in 2017 by the co -founder of Ethereum, Vitalik Buterin.

Why are segwit transactions cheaper?

So why do segwit transactions look cheaper compared to the old Bitcoin transactions? The main reason is how transactions are structured and optimized for both systems.

• Transaction size : Segwit allows a limit of 6,400 bits to transaction data, which is significantly lower than the limit of 2,048,571 by -aged transactions (inheritance). This use of low space means lower calculation costs and faster processing time.

• Optimized data structure : SEGWIT uses a more effective data structure for transactions called “Locking Header”. These blocks contain a condensed version of the entry and output value of the transaction, which facilitates the processing and checking of transactions.

• Faster Confirmation Time

  : By reducing the number of transactions required to confirm one transaction (“block size” in Bitcoin), Segwit allows for faster processing of transactions compared to the legacy.

Why do inherited addresses have higher taxes?

Now that you know why Segwit is cheaper, let’s throw ourselves in which old addresses are still bigger. The main reason is how the inherited transactions are structured and optimized for both systems:

• Increased complexity of calculation : non -segregated transactions require a more complex data structure to represent the values ​​of the entry and output value of the transaction, which increases the calculation costs.

• Additional gas taxes : hereditary transactions often include additional “gas” taxes associated with transactions, which can be added quickly. These taxes are calculated on the basis of factors such as the congestion of the network, complexity of transactions and the limit of the block size.

• Network congestion : hereditary nets are usually congested from networks activated segwit, which leads longer with a transaction and increases gas tax costs.

What do you say on Ethereum’s taxes?

Ethereum’s design is a little more complex than Segwit, with his gender cryptocurrent currency, ether (ETH), a major congestion engine. However, Ethereum has implemented different measures to reduce taxes:

• Gas ​​Pools : Gas platforms allow users to communicate their transactions and share computer resources, reducing the individual transaction time.

• Circle programming

  

  : This innovative technique allows developers to create personalized programs that perform multiple transactions in one block, significantly reducing gas consumption.

Conclusion

In conclusion, the differences between Bitcoin Segwit and Legacy transactions can be attributed to the designer choices brought by the creators of each system. Although Segwit is optimized for efficiency and profitability, inherited addresses are still higher due to increased composition of calculation, additional gas taxes and network congestion.

As the landscape of cryptocurrencies continues to develop, understanding these differences between Segwit transactions and inheritance will become more and more important for developers, merchants and users.