BIP141

BIP141 stands for Bitcoin Improvement Proposal 141, which is an upgrade to the Bitcoin network’s code. It was introduced to enable the implementation of Segregated Witness (SegWit), a technology that separates transaction signatures from transaction data. By separating these elements, SegWit helps increase the efficiency of the Bitcoin network by reducing the size of transactions and improving scalability.

BIP141 was proposed as a way to address issues such as transaction malleability and block size limitations that were impacting the Bitcoin network’s speed and cost. By implementing BIP141, the Bitcoin network can handle more transactions per block and reduces congestion on the network, leading to faster and cheaper transactions for users.

Overall, BIP141 and SegWit have been significant developments in the Bitcoin ecosystem, allowing for improvements in transaction speed, efficiency, and overall network scalability. The implementation of BIP141 was a major step forward in the evolution of Bitcoin as a digital currency that can compete with traditional payment systems.