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Author: Admin | 2025-04-28
Key Takeaways:Bitcoin addresses are unique identifiers used for sending and receiving cryptocurrencyThere are three core types of Bitcoin addresses – P2PKH (starting with ‘1’), P2SH (beginning with ‘3’), and Native SegWit or bech32 (initiating with ‘bc1’)Each address type has its unique characteristics, benefits, and drawbacks that crypto users should consider before choosing the right oneWhat Are the 3 Bitcoin Addresses? Legacy, SegWit, And Native SegWitLegacy addresses (P2PKH) are the original Bitcoin address format, while Pay to Script Hash (P2SH) and native SegWit (P2WPKH) or bech32 addresses are newer formats that use different ways of storing information.In the ever-evolving world of cryptocurrency, understanding the different types of Bitcoin addresses is crucial for safely managing your digital assets. As a crypto beginner, you may wonder about these alphanumeric strings that enable sending and receiving bitcoins.In this blog post, we’ll delve into the three core Bitcoin address formats – P2PKH (starting with ‘1’), P2SH (beginning with ‘3’), and Native SegWit or bech32 (initiating with ‘bc1’) – to help you make informed decisions when transacting in the largest and most popular cryptocurrency.Legacy Addresses (P2PKH)Legacy addresses, also known as P2PKH (Pay-to-Public-Key-Hash) addresses, are the original Bitcoin address format and start with the number 1. When you send bitcoins to a legacy address, they get locked to a public key that corresponds to an alphanumeric string of characters.However, transactions from legacy addresses tend to be more expensive in terms of fees than newer SegWit formats. Plus, it is not possible to send SegWit transactions from legacy addresses without going through additional steps like transferring coins between different wallet types.Pay To Script Hash (P2SH)Pay to Script Hash (P2SH) is a type of Bitcoin address format that allows for more complex functions than the Legacy addresses. This means that you can use P2SH transactions to create multi-signature or multi-factor authentication transactions, adding an additional layer of security to your Bitcoin transactions.One advantage of using P2SH transactions is that they allow for compatibility between different types of addresses, including SegWit and non-SegWit formats.This means that you can transfer Bitcoins across different types of wallets and exchanges without worrying about compatibility issues.Native SegWit (P2WPKH)Native SegWit, also known as Bech32 addresses, is a new address format. These addresses start with “bc1” and are distinguishable from other types of addresses by their unique structure.Unlike legacy and SegWit addresses that use Pay-to-Script-Hash (P2SH) structures, native SegWit solely uses P2WPKH (Pay-to-Witness-Public-Key-Hash).Using a wallet that supports native SegWit is beneficial since it offers improved security and faster transaction times while keeping fees low. It’s important to check whether your preferred wallet can generate this newer type of address before setting up a new account.Taproot (P2TR)Taproot is the newest and most advanced Bitcoin address format, also known as P2TR or Bech32m. It offers improved privacy when transacting on the Bitcoin network.The main advantage of Taproot is its ability to improve transaction privacy by allowing multiple transactions to be hidden within a single one. This means that it can reduce blockchain bloat, which ultimately lowers transaction fees.Advantages
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