How Can You Tell What Standard a Bitcoin Wallet Address Is?
Identifying the standard of a Bitcoin wallet address is simple once you understand how the different formats are structured. Here’s how to distinguish between them:
-
Legacy (P2PKH) Addresses
These are the oldest type of Bitcoin addresses and start with a “1”. They were widely used in the early days of Bitcoin but have been largely replaced by newer standards that offer lower fees and improved transaction capabilities. The legacy addresses are compatible with almost all wallets and exchanges -
Pay-to-Script-Hash (P2SH) Addresses
If an address starts with a “3”, it’s a P2SH address. This format allows for more complex transactions, including multi-signature wallets and SegWit (Segregated Witness) transactions. P2SH addresses reduce transaction fees compared to legacy addresses, making them more efficient for most users -
Native SegWit (Bech32) Addresses
These addresses begin with “bc1q” and are the most efficient in terms of transaction size and cost. Native SegWit addresses offer even lower fees and faster transaction times by streamlining data storage on the blockchain. Additionally, Bech32 addresses provide enhanced error detection and are case-insensitive -
Taproot (P2TR) Addresses
Taproot is the latest upgrade to the Bitcoin network, and addresses that follow this standard start with “bc1p”. Taproot enhances privacy and efficiency, especially for complex transactions like smart contracts, but its adoption is still growing
By looking at the prefix of a Bitcoin address, you can easily determine its standard and understand the features and compatibility it offers. Each type has its own advantages in terms of transaction fees, privacy, and the kinds of scripts they support, so choosing the right one depends on your specific needs.
In the Klever Wallet, we use Native SegWit (Bech32) addresses for Bitcoin transactions. These addresses, which begin with “bc1q”, provide several advantages over older formats, including lower transaction fees, faster confirmation times, and improved error detection. Native SegWit is widely supported and helps optimize block space, making it the preferred choice for efficient and cost-effective transactions