🌀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:

  1. 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

  1. 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

  1. 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

  1. 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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