[LIST] Wallets supporting Taproot

[dkbit98]

There are two interesting wallets that support Taproot addresses but do not keep coins on those addresses - they automatically swap them to Layer 2 instead.

I never heard about this wallets, and I could not even start them properly and see more information about them.
First one had some server unreachable error, and second one showed error Unable to load user settings. Please try again.  
Even if I could start this wallets, they are not technically supporting Taproot, and I don't care about most L2 chains, with few exceptions.
Thank you for suggestion but I am not going to add this wallet to my list.

 

[Pmalek]

But the original post includes Phoenix. It also receives bitcoins to Taproot addresses and immediately forwards those bitcoins to L2.

Are you sure about that? Maybe that's because Phoenix is supposed to be a wallet meant for the Lightning Network. Does it keep on-chain bitcoin deposits at all or are all on-chain bitcoins immediately swapped for LN funds? It would be weird if they only did it with Taproot addresses.

If Phoenix Wallet does the same thing as Arkade Wallet and Blitz, then I think the same warning messages should be written in the OP for those two pieces of software. L1 and L2 BTC are two different things. While I want to hold one, it doesn't mean that I want the second one as well.

[internetional]

 

Very strange that both of your wallets either don't work at all or don't support Taproot. I just checked again - both wallets generate a Taproot address by default for receiving Bitcoin, and treat Taproot addresses as valid when sending.

But yes, I agree that in both cases the Taproot support is implemented very specifically: only receiving and sending are supported, not direct on-chain storage.

Maybe that's because Phoenix is supposed to be a wallet meant for the Lightning Network. Does it keep on-chain bitcoin deposits at all or are all on-chain bitcoins immediately swapped for LN funds? It would be weird if they only did it with Taproot addresses.

Regarding the Phoenix wallet, Taproot support is organized like this:

- User sets the maximum on-chain fee they are willing to pay.

- User receives an incoming on-chain transfer to a Taproot address (Taproot is the default, and I'm not exactly sure if there is an option to receive on-chain Bitcoin to other address formats). In general case, the user's private key does not allow controlling the funds at this address.

- Wallet gets from its server an estimated fee size that is required to move the received coins into a payment channel.

- - If the fee does not exceed the threshold set by the user, the funds are moved into a payment channel. If it does exceed the threshold, the funds remain unusable until the estimated fee drops and the wallet is able to move the coins to the Lightning Network.

- - If the fee does not decrease within 4 months, the user's private key becomes usable to control those coins. For example, the Phoenix seed phrase can be imported into Blue Wallet to create a transaction and spend the funds.

[Pmalek]

Regarding the Phoenix wallet, Taproot support is organized like this:

- User sets the maximum on-chain fee they are willing to pay.

- User receives an incoming on-chain transfer to a Taproot address (Taproot is the default, and I'm not exactly sure if there is an option to receive on-chain Bitcoin to other address formats).
...

I just took a look at a BTC Session tutorial about the Phoenix Wallet and how it works. As I suspected, Phoenix Wallet allows you to deposit on-chain bitcoin to the wallet, but in the background those coins are moved to the Lightning Network automatically. Phoenix waits for 3 confirmations, it then opens a lightning channel for you, takes a fee, and moves your deposit to the Lightning Network. In the video, Ben sent on-chain BTC to a standard Segwit address, not a Taproot one. It's a few months old and maybe they support both address formats now.