Bitcoin - Legacy and Segwit Addresses

Difference between the various types of Bitcoin addresses

There are four most common types of Bitcoin address formats:

1. P2PKH addresses that begin with the number "1" Example: 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2

2. P2SH addresses starting with the number "3" Example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy

3. Bech32 addresses, also known as "bc1 addresses" starting with "bc1" Example: bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq Bech32 is supported by most software and hardware wallets, but only a few exchange platforms. Bech32 is more efficient with block space.

4. Taproot (P2TR) addresses, also called Taproot or Bech32m, are the latest and most advanced format in Bitcoin. These addresses are case-insensitive and begin with bc1p. They improve scalability, flexibility, privacy, and security, but they are opt-in and not yet commonly supported, much like SegWit. Example: bc1p5d7rjq7g6r4jdyhzks9smlaqtedr4dekq08ge8ztwac72sfr9rusxg3297