Understanding the Different Types of Bitcoin Addresses
Pay-to-Witness Script Address (P2WSH)
Also known as SegWit addresses, P2WSH addresses store less information in each transaction compared to Legacy addresses. This saves transaction fees by about 16%. They start with the prefix "bc1".
Pay-to-Taproot Address (P2TR)
P2TR addresses are the most recent address type introduced by the Taproot soft fork. They offer enhanced privacy and efficiency, making them the most advanced format in Bitcoin. They start with the prefix "bc1p".
Legacy Address (P2PKH)
Legacy addresses are the original Bitcoin address format. They start with the number "1". While still widely used, they are less efficient and private compared to P2WSH and P2TR addresses.
Additional Information
- Bitcoin addresses must be unique and cannot be reused.
- Different types of wallets may only support certain address types.
- Users should always confirm the correct address before sending Bitcoin payments.
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