Why people should be using SegWit addresses

[Text]

Hi @Charles-Tim, I'm using Trust wallet as one of my main wallets so I can say that the address is not changing after making a successful transaction, it is permanent. And I didn't know that it was a close source.

How it is being determined if a wallet is an open or close source? How about Coinomi? Its addresses are changed after making a successful transaction.

[Charles-Tim]

Sorry for this distraction about 'people should use segwit', I think we should more focus on it.

I'm using Trust wallet as one of my main wallets so I can say that the address is not changing after making a successful transaction, it is permanent. And I didn't know that it was a close source.

Another reason Trustwallet is not recommendable

How it is being determined if a wallet is an open or close source? How about Coinomi? Its addresses are changed after making a successful transaction.

You can check the code on GitHub, but as for people that are not developers, the best way is to ask on forum like this because some wallets are just not completely open source. Coinomi is close source either, although it was open source few years ago.

[1miau]

Since Taproot-Addresses have been launched for a while now, I've added a few lines including them in my overview:

Prefix	Category	Format
________	__________________________	_______________________________________________________________________________ _____________
bc1p…	Taproot-Address	P2TR-bech32m (pay to tap root)

...

bc1p… Addresses starting with bc1p, are always SegWit.

....


Native SegWit or nested SegWit?

After reading the lines above and finding out about the benefits of using SegWit addresses, you may be wondering what the differences are between a native SegWit address (bech32, starts with bc1q...) / Taproot Address (bech32m, starts with bc1p) compared to a nested SegWit address (P2WPKH-P2SH / P2WSH-P2SH, starts with 3....).
For us, it is important to know that using a native SegWit Address / Taproot-Address will result in even lower fees compared to a nested SegWit address.  

Savings when sending from a nested SegWit address (3...) compared to a normal legacy address (1...) are 26% +.
Savings when sending from a native SegWit address (bc1q...) compared to a normal legacy address (1...) are 38% +.
Depending on the number of inputs to the address, savings are variable, with a higher number of inputs saving even more in percentages.

Added in November 2022: now, Taproot-Adresses (bc1p), are also available. In terms of saving fees, Taproot-Addresses are similarly effective as native SegWit Addresses (bc1q…). Savings compared to a normal legacy address (1...) are 38% +
A detailled calculation can be found here, provided by Charles-Tim.
It's because of native SegWit and Taproot are technically very similar because native SegWit and Taproot are part of the Witness Programm (bech32 / bech32m).

...



All details are included in my OP.
In general, it's nice to see Bitcoin progressing from a technical point and I'm honored to include Taproot-Addresses in my OP.  

[NeuroticFish]

bc1p… Addresses starting with bc1p, are always SegWit.

Maybe you should not be differentiating Taproot from SegWit so "heavily".
I see Taproot a subset (more correctly it's a newer version) of SegWit. So bc1*, no matter it's bc1q, bc1p or other letters corresponding to the newer versions that'll come up (since that p or q after bc1 simply reflect the version of the bech32 address), the benefits should remain.

[Charles-Tim]

Maybe you should not be differentiating Taproot from SegWit so "heavily".
I see Taproot a subset (more correctly it's a newer version) of SegWit. So bc1*, no matter it's bc1q, bc1p or other letters corresponding to the newer versions that'll come up (since that p or q after bc1 simply reflect the version of the bech32 address), the benefits should remain.

You are right, all bc1 addresses are segwit and that is what we should refer segwit as, but I think the main reason 1miau emphasized on bc1p is just for people to understand, especially newbies, that all bc1p addresses are segwit (that all pay-to-taproot addresses are segwit), which means P2TR is segwit. I think that can be taken correct for people to just understand what P2TR is all about.

[1miau]

bc1p… Addresses starting with bc1p, are always SegWit.

Maybe you should not be differentiating Taproot from SegWit so "heavily".

That's a good idea, I'll try to think about a better table structure implementing your suggestion.
Maybe next weekend I should have time to come up with a good solution.  

I've already changed this line here as it's a good solution in my opinion:

bc1… Addresses starting with bc1q (native SegWit) and bc1p (Taproot)… Addresses starting with bc1p are always SegWit.

Maybe you should not be differentiating Taproot from SegWit so "heavily".
I see Taproot a subset (more correctly it's a newer version) of SegWit. So bc1*, no matter it's bc1q, bc1p or other letters corresponding to the newer versions that'll come up (since that p or q after bc1 simply reflect the version of the bech32 address), the benefits should remain.

You are right, all bc1 addresses are segwit and that is what we should refer segwit as, but I think the main reason 1miau emphasized on bc1p is just for people to understand, especially newbies, that all bc1p addresses are segwit (that all pay-to-taproot addresses are segwit), which means P2TR is segwit.

Exactly, it's because sometimes, people are confusing nested SegWit (P2WPKH-P2SH / P2WSH-P2SH) and Multisig (P2SH) which both are starting with 3... but only one of them is (nested) SegWit.
Originally, the idea to write the part came up because many Signature campaign participants didn't know about it, so it was a good explanation for them back then.  

[GazetaBitcoin]

Hey 1miau, thank you for this long-waited update of OP Besides that, I'd also like to ensure you that all changes you brought to OP are now reflected in the translated topic as well. In case you will add also a new table structure I will also make this change. But, until then, Romanian translation is 100% mirroring the original topic.

Other than that, please check your PM, as I sent you a few minor suggestions about OP. I hope this helps.

Cheers!

[1miau]

Hey 1miau, thank you for this long-waited update of OP Besides that, I'd also like to ensure you that all changes you brought to OP are now reflects in the translated topic as well.

Much appreciated, dear Gazetabitcoin. 

In case you will add also a new table structure I will also make this change. But, until then, Romanian translation is 100% mirroring the original topic.

After diligent evaluation, I've come to the conclusion to arrange it like that: adding lines to "regroup" address formats, where native SegWit (bc1q...) and Taproot (bc1p...) are part of the same group:

SegWit (https://en.bitcoinwiki.org/wiki/Segregated_Witness) was introduced 4 years ago and a main improvement of SegWit are lower transaction fees for transactions sent from SegWit addresses.

For Bitcoin addresses, different address formats exist. It is partly visible by having a look at their prefix:

Prefix	Category	Format
________	__________________________	_______________________________________________________________________________ _____________
1…	Legacy-Address	P2PKH (pay to public key hash)
3…	Multisignature-Address	P2SH (pay to script hash)
________	__________________________	_______________________________________________________________________________ _____________
3…	nested SegWit-Address	P2WPKH-P2SH (pay to witness public key hash - pay to script hash) / P2WSH-P2SH (pay to witness script hash - pay to script hash)
________	__________________________	_______________________________________________________________________________ _____________
bc1q…	native SegWit-Address (bech32)	P2WPKH-bech32 (pay to witness public key hash) / P2WSH-bech32 (pay to witness script hash)
bc1p…	Taproot-Address	P2TR-bech32m (pay to tap root)

Of course, suggestions or ideas are always welcome. 

Other than that, please check your PM, as I sent you a few minor suggestions about OP. I hope this helps.

Yes, it's reviewed and updated now in my topic. 
Many thanks again for your valuable contribution. 

[GazetaBitcoin]

Much appreciated, dear Gazetabitcoin. 

Welcome, as always

After diligent evaluation, I've come to the conclusion to arrange it like that: adding lines to "regroup" address formats, where native SegWit (bc1q...) and Taproot (bc1p...) are part of the same group

Yup, I noticed. And I also observed that you also grouped Legacy and Multisig addresses under same "class", in the upper side of the table. Indeed, the table looks much better by having the addresses separated by their "class".

And, of course (after fighting again, like a true gladiator, with BBCode's "_"s) I also added the changes to translated topic.

I sent you a few minor suggestions about OP. I hope this helps.

Yes, it's reviewed and updated now in my topic. 
Many thanks again for your valuable contribution. 

Anytime, glad I could help! If I spot anything else, I'll let you know

[knowngunman]

@1miau I will like to translate the op to pidgin in Nigeria local board with your permission.

[1miau]

@1miau I will like to translate the op to pidgin in Nigeria local board with your permission.

Hello 

You have my permission to translate if of course.
SegWit is a very important topic of Bitcoin and it's also helping us to lower transaction fees. It's nice to get a translation for a topic about SegWit.

I've reserved your translation:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
Nigeria	knowngunman (reserved)	reserved

[knowngunman]

Hello 

You have my permission to translate if of course.
SegWit is a very important topic of Bitcoin and it's also helping us to lower transaction fees. It's nice to get a translation for a topic about SegWit.

I've reserved your translation:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
Nigeria	knowngunman (reserved)	reserved

Thank you for giving your consent to translate your thread. I'm pleased to inform you that the translation is completed and I will like you to have a look at it here https://bitcointalk.org/index.php?topic=5472548.msg63092260#msg63092260

Thank you.

[1miau]

Thank you for giving your consent to translate your thread. I'm pleased to inform you that the translation is completed and I will like you to have a look at it here https://bitcointalk.org/index.php?topic=5472548.msg63092260#msg63092260

You translation is much appreciated and it's approved already, well done.
Hopefully, you've learned something about SegWit as well.  

I've added your translation to my OP:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
Nigeria (Naija)	knowngunman	Na why people go dey use SegWit addresses

It's always helpful to have nice members translating important content.  


I've listed GazetaBitcoin's Romanian translation and my German translation, too.

[1miau]

After paid2 translated my topic already some weeks ago, I've now added the French translation to my list as well:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
French (Français)	paid2	Pourquoi tout le monde devrait utiliser des adresses Segwit

Nice to have my topic in the French Bitcointalk section and many thanks @paid2 for providing a translation. 

[paid2]

After paid2 translated my topic already some weeks ago, I've now added the French translation to my list as well:
-snip
Nice to have my topic in the French Bitcointalk section and many thanks @paid2 for providing a translation. 

Thank you 1miau!

I was happy to translate your topic, as it is a must-read for beginners in my opinion 

[1miau]

After paid2 translated my topic already some weeks ago, I've now added the French translation to my list as well:
-snip
Nice to have my topic in the French Bitcointalk section and many thanks @paid2 for providing a translation.  

Thank you 1miau!

I was happy to translate your topic, as it is a must-read for beginners in my opinion  

I'm hoping so as well.  
As we are speaking, Bitcoin's network is still very congested and saving fees, especially from many inputs, can be crucial here.
Even if today's fees are getting "a bit more moderate" now, it might hurt a lot, reviewing in 5 years (for example), when Bitcoin's price is probably at 200k USD, how much we paid for fees back in December 2023.  
SegWit is a very nice option to save fees easily.  

[Publictalk792]

Hello @1miau I want to translate your topic in my local language in Urdu. Will you give me permission?

[uchegod-21]

Re: Why people should be using SegWit addresses

The whole essence of Segwit addresses is now very much appreciated in the forum because of the mempool congestion. If you look around, some campaigns which were only accepting legacy addresses have shifted and has begun to require only Segwit addresses.

It is now I have understood and appreciated the essence of this topic. Well done @1maiu.

[1miau]

Hello @1miau I want to translate your topic in my local language in Urdu. Will you give me permission?

Hello Publictalk792  

Unfortunately, it's currently not available to apply for doing new translations, as stated in my OP below my list of translations:

Please note: reserving new translations is not available currently.  

It's due to reported abuse in Meta (you can read more about it here). We are currently elaboration a solution how to prevent abuse.  

To approve it manually as an exception, I've reserved your local translations for now:

Language	translated by	Title
___________________________	_____________________	_______________________________________________________________________
Pakistan	Publictalk	reserved

[Nalain420]

I have completed translation and this my Translation link in Arabic language: https://bitcointalk.org/index.php?topic=5479946.0

Thanks @1miau for giving me a opportunity to translate this important topic into Arabic section. I hope to translate other your topics in future.

Have a nice day 

Nalain420 ~