<P> Wallets and similar software technically handle all bitcoins as equivalent, establishing the basic level of fungibility . Researchers have pointed out that the history of each bitcoin is registered and publicly available in the blockchain ledger, and that some users may refuse to accept bitcoins coming from controversial transactions, which would harm bitcoin's fungibility . </P> <P> The blocks in the blockchain were originally limited to 32 megabytes in size . The block size limit of one megabyte was introduced by Satoshi Nakamoto in 2010 . Eventually the block size limit of one megabyte created problems for transaction processing, such as increasing transaction fees and delayed processing of transactions . </P> <P> On 24 August 2017 (at block 481,824), Segregated Witness (SegWit) went live . Transactions contain some data which is only used to verify the transaction, and does not otherwise effect the movement of coins . SegWit introduced a new transaction format that moved this data into a new field in a backwards - compatible way . The segregated data, the so - called witness, is not sent to non-SegWit nodes and therefore does not form part of the blockchain as seen by legacy nodes . This lowers the size of the average transaction in such nodes' view, thereby increasing the block size without incurring the hard fork implied by other proposals for block size increases . Thus, per computer scientist Jochen Hoenicke, the actual block capacity depends on the ratio of SegWit transactions in the block, and on the ratio of signature data . Based on his estimate, if the ratio of SegWit transactions is 50%, the block capacity may be 1.25 megabytes . According to Hoenicke, if native SegWit addresses from Bitcoin Core version 0.16. 0 are used, and SegWit adoption reaches 90% to 95%, a block size of up to 1.8 megabytes is possible . </P> <P> Satoshi Nakamoto stated in his white paper that: "The root problem with conventional currencies is all the trust that's required to make it work . The central bank must be trusted not to debase the currency, but the history of fiat currencies is full of breaches of that trust ." </P>

First country to promote bitcoin in their economy