The witness data is still kept in the blocks right on the chain, only like I explained it is kept in an extended part of the transaction that non-segwit can't see because the number of transaction inputs is zero according to non-segwit nodes. If you look at the current segwit protocol, you can see they added a "flag" field to the transaction. It says "If present, always 0001, and indicates the presence of witness data". To non-segwit nodes this byte is the tx_in count var_int... when it sees the first byte 00, it thinks there are no transaction inputs and rejects the transaction. What blows my mind is the complete lack of response from Ivan on these issues that I have presented.. the silence is deafening! Unless you are Ivan using a different account?
RE: Bitcoin Lightning Network LAUNCHED. Programmer explains.