Trezor and Ledger, the two leading hardware wallet manufacturers and developers in the Bitcoin industry, have announced the integration of Segregated Witness.
Thus, on August 24th, Ledger became the first Bitcoin wallet to support SegWit.
Ledger wallet to support SegWit
Among other benefits of the activation, Ledger emphasized that SegWit drastically improves Bitcoin’s scalability and security of hardware wallets.
Segwit introduces the concept of block weight which changes the way the transaction size is computed by splitting the signatures in a different area — you can typically save 35% of the fee paid when sending a transaction immediately.
On top of that, when computing a Segwit signature, the previous transactions do not need to be processed by the device, and each input is only processed once during the signature process, leading up to a 60% time optimization in the signature process.
Trezor wallet to support SegWit
In its turn, Trezor's announcement had also been focused exclusively on the positive effects of Segregated Witness for the company and Bitcoin wallets in general.
It might seem to be a trivial change, but the security implications are large. The lower the amount of operations the hardware wallets need to do, the lower the probability of something going awry. Moreover, with SegWit, wallets do not sign each inputs separately anymore, but first they will hash all the inputs, and then sign the hash. With this method, the amount of operations the wallets have to do is decreased, and thus the transaction creation process is sped up.
Thus, SegWit transactions are designed in such a way that allows hardware wallets to get rid of the verification process altogether, as SegWit transactions will include the value of previous outputs in the signature of the transaction. The wallet thus does not need to request the previous transactions nor hash them anymore, saving precious time for users, the Terezor team details.
From a hardware wallet’s perspective there is no reason to delay SegWit activation.