Segregated Witness enters final testing phase, including support for Lightning Network testing

Bitcoin Core developers Dr. Pieter Wuille, Eric Lombrozo, and Johnson Lau today released the fourth (and possibly final) iteration of the Segregated Verification testnet. Compared to earlier versions, "SegNet 4" also includes support for another Bitcoin protocol improvement, CheckSequenceVerify ( CSV ). This makes it possible to experiment with routing bidirectional payment channels, which is what we often call the Lightning Network.

Segregated Witness is a technical innovation that allows senders of Bitcoin transactions to separate cryptographic signatures from the typical block structure. This setup improves several aspects, including the long-awaited fix for transaction malleability. And, relevant to the ongoing scaling debate, Segregated Witness will provide up to 1MB of scaling benefits (depending on the transaction type).

Compared to previous SegNets, SegNet 4 includes support for CSV. CSV allows users to lock Bitcoin for a period of time, similar to CheckLockTimeVerify (CLTV), but with a relative timelock. CLTV locks Bitcoin to a specific time in the future, while CSV locks Bitcoin for a specific amount of time before a CSV transaction is included in a block. This makes more complex smart contracts possible because it allows more flexibility.

In an interview with Bitcoin Magazine, Bitcoin Core developer and Ciphrex CEO Eric Lombrozo explained that the combination of Segwit and CSV is particularly beneficial for scaling additional layers on the Bitcoin blockchain.

“SegNet 4 provides a testing environment for routing bidirectional payment channels, such as the Lightning Network or Amikopay,” Lombrozo said. “These projects will greatly increase Bitcoin’s scalability and allow for instant secure and cheap payments, and with SegNet 4 we are providing a general network where different projects can collaborate and test their ideas. It’s public and we encourage wallet developers to participate.”

The release of this test network is also an important step for Bitcoin Core's scalability journey.

“The original roadmap didn’t include a specific date, but the FAQ page on the Bitcoin Core website mentioned that Segwit would be deployed in April. We have made a lot of progress, but we have a very rigorous testing and code review process that we need to ensure that the Bitcoin network continues to operate safely and reliably. We plan to file a full-featured change request in the next month, but it may take some time for Segwit to be accepted and integrated into Bitcoin Core. This is a top priority, however, and we hope to be able to deploy Segwit quickly and safely,” Lombrozo explained.

In addition, Lombrozo also mentioned:

“We are using BIP9, which means we can deploy CSV and Segwit in parallel; Segwit does not need to wait for CSV to activate and vice versa. We will likely merge CSV into Bitcoin Core in the coming weeks as it is tested and reaches the final stages of review. The Segwit change request will hopefully follow soon after.”

Original text: https://bitcoinmagazine.com/articles/segregated-witness-enters-final- testnet-stage-includes-lightning-network-support-1459357231
By Aaron van Wirdum
Compilation: Overnight porridge
Source (translation): 8btc Information (http://www.8btc.com/segregated-witness-testnet)