It took a long time, but the disagreements about future block size adjustments and the implementation of SegWit finally led to a schism in the Bitcoin community.
This is advantageous because, in a decentralized network, it might take some time until all participants have switched to new software and all transactions have been translated to the new format, which is a benefit.
Taking the example of Alice at a café, who is presently paying for a coffee with Bitcoin and transferring the money to Kate’s public wallet address: As transaction inputs, a transaction often refers to preceding transactions that were referenced in the transaction.
If Kate subsequently decides to purchase anything with these Satoshis, she will transfer ownership of the item to the Satoshis in exchange for the money.
As a result of the potential of incorporating your own logic into scripts, the term “Programmable Money” is often used to refer to Bitcoin.
It is necessary to utilise a different kind of transaction in this situation: A hash in the scriptPubKey field of the transaction is used to capture complicated output circumstances when using the Pay-to-Script-Hash technique.
Even though just three signatures are necessary to release the Satoshis in a three-out-of-five multi-signature arrangement with five signatures, the Redeem script has parts for all possible pathways to redemption.
Since a result, larger transaction costs are incurred, as fees are levied for every byte of available storage space.
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