Bitcoin’s scalability difficulty has been a giant concern for the group ever since different altcoins and forked cash discovered a approach to make transactions sooner and less expensive. So, when Segregated Witness (SegWit) got here into the image, individuals anticipated Bitcoin to be among the many first to undertake it. Nonetheless, it was litecoin who applied the Segwit protocol first in April 2017 regardless that they didn’t really want it.
The success of SegWit on Litecoin together with the constructive suggestions from the group steered the way in which for its adoption on the Bitcoin community. Litecoin’s adoption proved that SegWit implementation on a stay crypto community works flawlessly and with none technical roadblocks.
Nonetheless, two years down the road, Litecoin remains to be within the lead by way of SegWit adoption in line with information from Blockchair. In early phases, Bitcoin confirmed an adoption fee of 10% as exchanges and wallets began integrating the off-chain answer of their ecosystem going neck-and-neck with litecoin. In February 2018, Coinbase determined to implement SegWit of their community, pushing the adoption stage on the Bitcoin community from 14% to 30% whereas litecoin’s adoption stage grew from 9% to 28%.
Litecoin’s adoption fee rises whereas Bitcoin’s slows down
The adoption fee slowed down a bit within the months following Coinbase integration, however litecoin confirmed one other spike in adoption fee between Might and September the place it grew from 24% to 50%. The 50% adoption fee for litecoin remained fixed since then. Nonetheless, Bitcoin didn’t make any vital progress on the adoption entrance after Coinbase integration and solely grew from 30% to 39%.
The slowdown of SegWit adoption on Bitcoin is comprehensible as Blockchain which is accountable for not less than 20% of Bitcoin transaction exercise by no means applied SegWit. One other issue that contributed to suppressed SegWit adoption on Bitcoin is VEriBlock, a undertaking which makes use of Bitcoin transactions for different blockchain networks for higher safety. Thus if we take out the non-SegWit transactions from VeriBlock it will be fairly near Litecoin stage of adoption as per the evaluation by LongHash
The info from Blockchair recommend that Bitcoin’s SegWit adoption would have been round 70% if the likes of BitPay and Blockchain built-in SegWit. Bitcoin later began selling Lightning community as their selection of an off-chain scalable answer, and the group didn’t actually really feel, the necessity of SegWit thereafter.