What is the difference between a wallet with and without Segwit?
Oxis is a cryptocurrency wallet that works with native Segwit. To receive Bitcoin and/or Litecoin to your wallet, the transaction must be made from a wallet that is compatible with Segwit.
But what does this mean?
SegWit is the abbreviation for “Segregated Witness”. It is a soft-fork that provided a method to separate the signatures from the transactions in a block to save data on the Bitcoin network. By saving data and reducing the size of these transactions, the fees for each transaction in theory can be lower.
This is what differentiates Oxis from a wallet that does not support Segwit; if the sending and receiving of funds is made to and from an address that works with SegWit, the transaction fees will be much lower .
The addresses that work with SegWit are known as Bech32 addresses and have a different prefix from those that don't. For BTC, a native segwit address (Bech32) will begin with the prefix `bc1`. For Litecoin, their native segwit addresses prefix with `ltc1`.
One of the best things about SegWit is that it is a feature that other cryptocurrencies can, and have easily adopted as well. Therefore, in Oxis we have native Segwit addresses for both Bitcoin and Litecoin.
The addresses that Oxis generates to receive Bitcoin begin with
bc1, while those used to receive Litecoin begin with
SegWit also increases the security of transactions, as it prevents transaction malleability. This is a problem that can occur when you want to spend a transaction that has not yet been confirmed by the network.
SegWit has been adopted by some wallets and cryptocurrency exchange services, but not by all yet. If you happen to experience issues sending funds to one of your Oxis addresses, more information can be found here .