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.