🌀Bitcoin Address Formats
Native SegWit, Nested SegWit, Taproot, and Legacy are all different Bitcoin address formats or transaction types within the Bitcoin network. Each has its own characteristics and benefits:
Native SegWit (Segregated Witness Bech32):
Wallet Supported: Phantom, Leather, Unisat, Okex Wallet
Native SegWit addresses start with "bc1."
Also known as Bech32 addresses.
Utilizes the Segregated Witness (SegWit) upgrade, which segregates the witness data from the transaction data, resulting in smaller transaction sizes and lower fees.
Offers improved security and better scalability compared to legacy addresses.
Recommended for most transactions due to lower fees and enhanced features.
Example: bc1qju52hg5v6z0f5ds49p4t33wz8gl88a5cuzx7hf
Nested SegWit (Pay to Witness Public Key Hash, P2SH-P2WPKH):
Wallet Supported: Xverse, Unisat, Okex Wallet
Nested SegWit addresses start with "3."
Combines the SegWit benefits with compatibility for older wallet software that does not support Bech32 addresses.
Allows for transactions to be sent to a SegWit address even if the sender's wallet doesn't natively support SegWit.
Transactions to nested SegWit addresses are slightly larger and may have slightly higher fees compared to native SegWit.
Example: 3NeLJQTPMJTZwuyYrMJLYHmtpqT7x8dYsk
Taproot:
Wallet Supported: Xverse, Phantom, Unisat, Okex Wallet
Taproot is a proposed Bitcoin improvement that enhances privacy, security, and smart contract capabilities.
Addresses created with Taproot start with "bc1p."
Combines multiple spending conditions into one, making complex transactions indistinguishable from simpler ones on the blockchain for improved privacy.
Expected to reduce transaction fees and enable more advanced smart contracts.
Example: bc1psd90nx647p00y0zx04kl5sx9sgjcpeeqyh9t8d0j220ssvu250hq20c84a
Legacy (Pay to Public Key Hash, P2PKH):
Wallet Supported: Unisat, Okex Wallet , Unisat
Legacy addresses start with "1."
These are the original Bitcoin addresses and transaction types.
Larger transaction sizes and typically higher fees compared to SegWit addresses.
While still widely supported, legacy addresses are less efficient and secure than SegWit addresses.
Example : 1HzCQZtedJ5jbn1YBuqgtkPVwfkjkuzyNR
NOTE: DUE TO SECURITY ISSUES AND COST OPTIMIZATION FOR USERS, WE WILL NOT SUPPORT LEGACY WALLET
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