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Taproot addresses 101

Understanding Bitcoin Address Formats

How to Tell the Difference Between SegWit and Taproot Bitcoin Addresses

Understanding Bitcoin Address Formats

Bitcoin addresses come in different formats based on network upgrades and efficiency improvements. Two of the most widely used are Segregated Witness (SegWit) and Taproot, each offering distinct benefits in transaction speed, privacy, and fee reduction. Here’s how to tell them apart.

Identifying a SegWit Address

SegWit addresses were introduced to improve Bitcoin’s scalability and transaction costs. They come in two forms:

1. P2SH (Pay-to-Script-Hash) — Starts with “3”

This is an older SegWit-compatible format wrapped in a legacy-style address.
Example:
3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy

2. Native SegWit (Bech32) — Starts with “bc1q”

Fully optimized for lower fees and better efficiency.
Example:
bc1qw508d6qejxtdg4y5r3zarvaryv9n3jc6

Identifying a Taproot Address

Taproot is the latest Bitcoin upgrade, bringing improved privacy and smart contract functionality.

Bech32m — Starts with “bc1p”

The most advanced format, enabling more efficient transactions and enhanced security.
Example:
bc1p5cyxnuxmeuwuvkwfem96l9szl4c5zcqljas6jap

Quick Comparison Table

Quick Comparison

✅ P2SH (Wrapped SegWit) — Starts with “3”

Compatibility with older wallets
Example:
3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy

✅ Native SegWit (Bech32) — Starts with “bc1q”

Lower fees, better efficiency
Example:
bc1qw508d6qejxtdg4y5r3zarvaryv9n3jc6

✅ Taproot (Bech32m) — Starts with “bc1p”

More privacy, smart contract capabilities
Example:
bc1p5cyxnuxmeuwuvkwfem96l9szl4c5zcqljas6jap

Conclusion

If your Bitcoin address starts with “3,” it’s a legacy SegWit format. If it starts with “bc1q,” it’s a native SegWit address. If you see “bc1p,” you’re using Taproot, unlocking the latest Bitcoin improvements.

By recognizing these differences, you can choose the best address type for your transactions, balancing compatibility, efficiency, and privacy in the Bitcoin network.