If I understand correctly then Taproot is 4th type of address format.
Legacy start with a 1
Nested SegWit starts with a 3
Native SegWit stars with bc1
How to identify Taproot address?
What are the advantages it has over a bech32 address?
This verity are going to be overwhelming and for someone like me who is old school it is going to be hard to remember
You can read this to know about the transaction fee advantage segwit version 0 (native segwit) has over segwit version 1 (pay-to-taproot).
Pay-to-taproot (P2TR) transaction feeBIP 86: m/86'/0'/0'/0/0 > Taproot
Key Derivation for Single Key P2TR OutputsFor low output and more input transaction, like consolidation, pay-to-taproot fee is lesser
For low input and more output transaction, the fee for native segwit (version 0) is lesser (a very good advantage)
For the same input and output, the fees are almost the same for version 0 (bc1
q addresses) and version 1 (bc1
p addresses)
For multisig. Transaction will be indistinguishable as a result of key aggregation, even 15-of-15 multisig will have the same fee like a transaction made from single pubkey wallet.
Also it can help in lightning network while closing a channel, both party can join their signatures together to make a single one which will also reduce transaction fee. It makes key aggregation possible and generate a single key and schnorr signature.
With the help of adaptor signature, atomic swap is possible.
The difference in both addresses
bc1q... For native segwit (segwit version o)
bc1p... For pay-to-taproot (segwit version 1)
q is the witness version 0 for native segwit, p is the witness version 1 for pay-to-taproot.