Why is the SegWit adoption rate bullish? Some sources report there is data that indicates a growing number of all Bitcoin transactions are using Segregated Witness or SegWit. That number is as high as 66% according to multiple reports.
There are three main benefits to using SegWit. Segregated Witness is described by CoinTelegraph.com as a “soft work protocol that changes the method of storing data” proposed in 2015 as a way to address scalability issues for Bitcoin.
How SegWit Works
SegWit operates by “segregation of the digital signature from the transactions data”. CoinTelegraph’s description of the process reminds, “digital signature is 65 percent of transaction” and removing that from the data “will increase Bitcoin’s blockchain maximum size from 1MB to a little under 4MB”.
SegWit innovations have also improved security–it was possible before to alter the digital signatures on transactions but under SegWit such signatures are no longer part of the data. No corruption is possible (in this specific context) when the signatures simply aren’t available to modify.