Segregated Witness, commonly known as SegWit, was first proposed in 2015 by Bitcoin Core developer Pieter Wuille. It is considered one of Bitcoin’s more effective solutions for improving network scalability. SegWit supports wallet addresses that begin with “3”, which are also commonly associated with multi-signature wallets.
Benefits of SegWit:
Improved security
Increased block capacity
Faster transaction verification
Lower transaction fees compared with traditional address types (such as addresses starting with “1”)