The Bitcoin Core Development Team released an eagerly awaited software upgrade designed to help scale the bitcoin network.

Version 0.16.0 of Bitcoin Core, the standard bitcoin network client, introduces full support for Segregated Witness (SegWit). Its release was announced by a Github announcement earlier in February.

"Bitcoin Core 0.16.0 introduces full support for segwit in the wallet and user interfaces," said a statement released Monday on a Linux Foundation mailing list.

The code is intended to solve Bitcoin's scalability obstacles. The main Bitcoin protocol has a maximum block size of 1 megabyte, which limits the volume and speed of transactions.

By separating signature and transactional data, SegWit reduces the "weight" of transactions, which creates more space in a given block. This does not increase the block size limit of the network, but increases the volume of possible transactions.

The deletion of signature information also solves the problem of malleability of transactions, which was previously a security vulnerability because transaction IDs could be modified. Likewise, this has hindered the implementation of second-layer protocols such as the Lightning Network.

SegWit also introduces a new address format created by Bitcoin Core contributors Pieter Wuille and Greg Maxwell that provides a better user experience, facilitates SegWit's automatic support and reduces transaction costs.

Introduced in November 2016, SegWit saw a slow adoption amidst the controversy over the block size limit.

Major crypto exchanges have recently supported SegWit, including GDAX and Bitfinex.

"SegWit not only provides an immediate benefit to users, but also a foundation for the future development of Bitcoin," said Bitfinex in a medium-sized article. "By supporting SegWit addresses, Bitfinex's attack has three of the biggest concerns of crypto-enthusiasts: transaction fees, transaction speed and total network capacity."

Bitcoin construction image via Shutterstock

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