About Different Types of Bitcoin Address Formats
Currentlythere are 3 separate Bitcoin address formats. It’s possible to tell the distinction medially the sorts of addresses if the speech starts with a 1, 3, or even bc1. [1 ]
Not these speech types are wholly compatible with platforms, therefore it’s crucial to send into some harmonious speech.
In overall, you could help save yourself a few hassles employing the person with a 3 in the front of it (exactly what others and we telephone the compatibility speech arrangement ) when given the decision. That is very if sending/receiving to/from a market or alternative party pocket, after all many don’t support bc1 addresses.
If you want to know more, for example if you are trying to make a deal on a third party platform and it is being rejected due to compatibility, here is a simple explainer of why things are like this and which addresses will work together.
Segwit and the Three Formats
There used to only be one type of address, however a feature was added to Bitcoin called “Segwit” to make transactions faster by decreasing block size.
SegWit essentially required two addresses formats to be added. One pure Segwit address, and one compatibility address to ensure Segwit and non-Segwit users could transact.
The result is three formats, one of which users can default to for simplicity sake in practice.
How the Three Formats of Bitcoin Addresses Work
P2PKH or Legacy Address Format (addresses start with “1 “)
The traditional format Bitcoin started with. This format tends to have higher deal fees than because it doesn’t utilize the upgrade. It might ‘t talk to Segwit addresses.
P2SH or Compatibility Address Format (addresses start with “3”)
This address type is widely supported and can be used to send funds to both Legacy and Segwit addresses. This makes it a smart choice for a casual user who is generating their own address.
Bech32 or Segwit Address Format (addresses start with “bc1”)
The Segwit address format. Using Segwit can lower deal fees. Some third party wallets and exchanges still don’t accept this particular format.