Can someone ELI5 Segregated Witness (AKA BIP 141)? I've been doing research and understand that there are segwit addresses, there are segwit transactions, and there are segwit nodes.
I understand that segwit basically works by removing the witness from the scriptSig and somehow it's weighed 1 weight point while other bytes are weighed at 4 weight points, but how?
How do older bitcoin nodes handle the segregated witness? Do they just not receive that data? I know that older nodes will treat those addresses as spendable by anyone since no witness is present or needed. This makes me believe the witness isn't in the transaction at all. But how? Where is the witness actually stored?
Where do segwit addresses come into all of this?