 Okay, so before I begin this video I do want to state a disclaimer. I am not a developer This is my attempt to distill and dilute all the technicalities out there and create this video for the layman like me So anyone can understand what Segwit is and hopefully I will be successful in this But first I do want to state I just want to thank everybody out there who's helped me through this process of understanding segregated witness and understanding their proposal to Scale Bitcoin so specifically for this video We're talking about Bitcoin and the proposal from Bitcoin core to scale Bitcoin through their segregated witness protocol So first of all, let's talk about how a Bitcoin blockchain transaction works right now So there should be an image right here popping up to my left in Every Bitcoin blockchain transaction you have one block that is one megabyte. Okay, so there's one block That's one megabyte now within that block You have all these different layers of data for the sake of this video and trying to keep things simple I'm gonna be talking about just two inputs over there or two two different data layers You have the header and then you have a transaction now in the header You have a bunch of information and in the transaction you have a bunch of information Now within the transaction is something really important within every transaction Obviously have inputs and outputs, but you also have something called a script. We'll just call it code Within the script you have your signature that represents you and you have your public key All of this is necessary to confirm that it's a legitimate transaction So that's how the system works right now But the issue is because the script is it's very heavy in weight So data weight it is clogging down each block and it's the one megabyte blocks are getting full and therefore the network is being bogged down So that's the issue right now That's a scaling issue is the blocks either need to be bigger or a different solution needs to be implemented Hence segue is a different solution as opposed to and hard for it So let's just go through this picture. So if you're looking at this second picture This is how a transaction will look right now Mike wants to send it to James and within the block it is Mike signature to James with all the script information in there And then James accepts it finally. Okay Now this is segregated witness proposal to speed up the Bitcoin protocol and also to scale the Bitcoin protocol as I mentioned in A regular blockchain transaction the Bitcoin blockchain transaction You have one block. That's a megabyte and in that transaction You had the script that has the signature and a public key now Segwit's proposal is they want to scrape that Script from the transaction and put it to a different block called an extended block so basically what this does is it reduces the size of a block hence making it more lighter making it faster and creating a better Platform to scale Bitcoin. So if Mike wants to send James a Bitcoin Traditionally it would be a signature to James, but in this case the signature is actually empty So the only information in the header or the only information going into that original block is just the receiver's information, which is James so How this works is one block just has the information of James and then there's going to be an extended block Which has just the script so that includes a signature of Mike and the public key of Mike and through this system in Layman's term pretty much what happens over here is they're just making the block itself less full They're having more optionality to scale the system faster to confirm the transactions faster and to lower the transaction fees So that's segue in a nutshell So if I had to summarize what it is, I'm trying to like I said I'm trying to distill this as simplistic as possible is and let me go back to the original over here Right if we're looking at the original image over here Every transaction has a script and in the script you have a signature and a public key and that takes up a lot of data Within that one block So that data like I said is clogging down the whole network So what segregated witness wants to do rips it out, okay? So we'll go to this next image it rips it out So now when Mike wants to send a Bitcoin to James instead of one block That has all the information you're gonna have one block plus a small extended block that holds the script So this like I said earlier what this does is it reduces the file size of the original block and also it creates more Optionalities to have transactions faster cheaper and scale Bitcoin So I hope you enjoyed this video of what segregated witnesses if I've made any huge awful mistakes Please let me know in the comments below like I said this videos for non-technical people and like always if you want me to Make any other videos leave a comment below this video and I will catch you guys soon. Peace