Bitcoin Legal Experts: nChain Seg Wit Criticisms Are Flawed


An effort by stealth bitcoin startup nChain to raise awareness of supposed issues with code that would boost the capacity of the distributed payments network is coming under fire.

Following its publication yesterday, legal experts raised concerns about a view put forward in a CoinDesk opinion article by nChain legal officer Jimmy Nguyen that asserted the upgrade, called Segregated Witness, could face problems under US electronic signature law if activated on the network.

Stephen Palley, counsel at Washington, DC, law firm Anderson Kill, remarked that the argument perhaps put too much weight on the idea that the "signatures" involved in executing transactions on the bitcoin blockchain were or should be equivalent to signatures used in digital documents.

"It elides the distinction between signature and witness data and a digital signature, and they're two different things," Palley said.

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