Bitcoin Address Types
Legacy, SegWit, Native SegWit, Taproot — differences in format and fees.
Bitcoin addresses have evolved over time — newer formats are more efficient and cheaper to use.
Address types:
1. Legacy (P2PKH) • Format: starts with "1" (e.g. 1A2B3C...) • Oldest format • Highest fees as it takes more block space
2. P2SH (Pay-to-Script-Hash) • Format: starts with "3" (e.g. 3J98t...) • Multisig and wrapped SegWit • Compatible with older wallets
3. Native SegWit (Bech32, P2WPKH) • Format: starts with "bc1q" (e.g. bc1qxy...) • SegWit activated 2017 — lower fees • ~40% smaller fee than Legacy • Recommended format for daily use
4. Taproot (P2TR, Bech32m) • Format: starts with "bc1p" (e.g. bc1p56...) • Activated November 2021 • Schnorr signatures — better privacy + efficiency • Foundation for Lightning Network improvements • Ordinals/Runes use Taproot
Compatibility:
Recommendation: