Bitcoin's performance was improved and enhanced in terms of security through the implementation of SegWit protocol.

Segregated Witness (SegWit), a significant technical update for the Bitcoin network, was activated on August 23, 2017. Proposed by developers Pieter Wuille, Eric Lombrozo, and Johnson Lau in 2015, SegWit aimed to enhance Bitcoin's scalability and fix transaction malleability, thereby enabling more efficient use of block space.

The activation of SegWit marked a significant milestone in the evolution of Bitcoin, addressing fundamental issues that had created bottlenecks in the network. One of the key problems it solved was transaction malleability, which had created uncertainties about the identification of payments and complicated future developments. By separating digital signatures from the main information of transactions, SegWit made certain types of attacks that exploited malleability more difficult, making transactions more resistant to external manipulations.

SegWit introduced new Bitcoin address formats, such as those starting with "bc1" (Bech32) and "3" (P2SH). The accelerated adoption of bech32 addresses, which improve storage and validation efficiency, reduce fees, and are more user-friendly and application-friendly, has been a notable outcome of SegWit.

Financial institutions have embraced SegWit for its practical benefits, such as reduced operational costs and more efficient handling of transaction volume. Over time, SegWit has become widespread in highly active cryptocurrency markets, reaching significant percentages of transactions. Many institutions have optimized their operations with lower latency and greater security due to compatibility with advanced solutions like wallets using SegWit addresses represented by the prefix bc1.

SegWit is a cornerstone for subsequent innovations that continue to expand Bitcoin's technological horizon, such as Taproot, Lightning Network, and bech32 addresses. Taproot has enhanced the privacy and efficiency of complex transactions by leveraging the structure and concepts introduced by SegWit. The Lightning Network, which enables instantaneous micropayments with virtually zero fees, functions "off-chain" and delegates final verification to the main blockchain, laying the groundwork for which SegWit paved the way.

The adoption of SegWit was a gradual process filled with technical challenges and debates within the community. However, SegWit's impact on the Bitcoin network is undeniable. It stands out not only for its technical benefits but also for what it meant for the Bitcoin community in terms of governance, collaboration, and long-term vision. SegWit is a lesson in how complex problems can be addressed through careful and collaborative engineering, where every detail has consequences for the network's robustness. SegWit was activated via a soft fork, which is a less drastic method of updating the Bitcoin protocol compared to a hard fork.

In conclusion, SegWit has been a pivotal upgrade for Bitcoin, improving its efficiency, security, and scalability. Its activation has opened the door for further innovations and has shown that the Bitcoin community can come together to address complex issues and propel the network forward.

Bitcoin's performance was improved and enhanced in terms of security through the implementation of SegWit protocol.