Bitcoin Taproot (Bech32m - bc1p) adoption

[SquirrelJulietGarden]

INDEX

• What is Taproot?
• How do I know a Bitcoin address is a Taproot address?
• Wallets that support Taproot
  
  • Software wallets
  • Hardware wallets
  • Web wallets
  • Exchanges
  • Payment processors
• Create Taproot address for your Bitcoin
• Receive or send your Bitcoin with Taproot address
• Check Bech32 adoption with charts
  
  • txstat from BitMEX
  • transactionfee.info
• Reference

What is Taproot?
Taproot is a softfork that makes Bitcoin transactions more private, scalable and opens to smart contract functionality. With Taproot (P2TR) transaction, you will save more transaction fee as size of transaction will be smaller.

Transaction fee saving can be like this

• With Legacy address (1): most expensive
• With Nested Segwit address (3): medium saving
• With Native Segwit address (bc1q): most saving
• With Taproot address (bc1p): most saving

How do I know a Bitcoin address is a Taproot address?
Bitcoin Taproot address (bech32m) starts with bc1p. It is a little different than Native Segwit address (bech32) that begins with bc1q. Remember the minor difference with p for Taproot and q for Segwit.

Other address types

• Legacy (P2PKH): starts with a 1.
• Nested SegWit (P2SH): starts with a 3.
• Native SegWit (P2WPKH): starts with bc1q.
• Taproot (P2TR): starts with bc1p.

Short Bitcoin Taproot explainer

Wallets that support Taproot
Check in Bech32 adoption

Software wallets

Hardware wallets

Web wallets

Exchanges

Payment processors

Block explorers, Mining pools, please get details in Bech32 adoption

Create Taproot address for your Bitcoin
There are some non-custodial wallets that support Taproot.

• Create Taproot address for your Bitcoin

Receive or send your Bitcoin with Taproot address

• Receiving: you can use any Bitcoin address type to receive Bitcoin from any other Bitcoin address type.
• Sending: it depends on your wallet software, exchange, platform. If they support to send Bitcoin to Native Segwit (Bech32, start with bc1q) or Taproot (Bech32m, start with bc1p), you will be able to send your Bitcoin to these address types. If they don't support it, you can not make such sending. Their softwares will reject your withdrawal request.

Check Bech32 adoption with charts
txstat from BitMEX
BitMEX has built a site for Bitcoin statistics. They have charts for Bech32 statistics (general, bech32 includes bech32m) and Taproot statistics

• Bech32 statistics: https://txstats.com/dashboard/db/bech32-statistics
• Taproot statistics: https://txstats.com/dashboard/db/taproot-statistics?orgId=1

Number of P2TR inputs and outputs per day from transactionfee.info

• https://transactionfee.info/charts/inputs-and-outputs-p2tr/

Reference

• Taproot - The biggest upgrade for Bitcoin since 2017 & documents to read.
• [LIST] Wallets supporting Taproot
• Create Taproot address for your Bitcoin

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[o_e_l_e_o]

Transaction fee saving can be like this

• With Legacy address (1): most expensive
• With Nested Segwit address (3): medium saving
• With Native Segwit address (bc1q): average saving
• With Taproot address (bc1p): most saving

Taproot transactions are not necessarily smaller than native segwit transactions. A taproot input is 10.5 vbytes smaller than a native segwit input, but a taproot output is 12 vbytes larger than a native segwit output. Therefore, a transaction consolidating many taproot inputs will be smaller than a native segwit equivalent, but standard 1-input-2-output taproot transaction will be larger than its native segwit equivalent.

Other address types

• Legacy (P2PKH): starts with a 1.
• Nested SegWit (P2SH): starts with a 3.
• Native SegWit (bech32): starts with bc1q.
• Taproot (P2TR): starts with bc1p.

Native segwit is called P2WPKH, not bech32. Bech32 is the name of the character encoding scheme.

[Charles-Tim]

For multisig comparison, taproot transaction fee cheaper because of key aggregation.

For single key transaction
Transaction vbyte for 1 input and 1 output, P2TR is 111 vbyte
Transaction vbyte for 1 input and 1 output, P2WPKH is 109.5 vbyte

The fee for P2WPKH with the same input and output is lesser than that of P2TR.

Use this calculator to know the input and output vbyte for input and output count, you will be able to understand more about o_e_l_e_o post.

I have some fee comparison here: https://bitcointalk.org/index.php?topic=5370591.msg58417300#msg58417300

For consolidation of inputs, P2TR transaction will have low fee if compared with P2WPKH
If paying to many addresses just like campaign manager paying campaign participants on this forum, P2WPKH is cheaper.

[SquirrelJulietGarden]

Taproot (Bech32m, starts with bc1p) adoption has changed upwards a lot since July 2022 when I made this topic.

Some screenshots today to compare with less than one year ago.

Screenshots are taken from
https://txstats.com/dashboard/db/taproot-statistics?orgId=1
https://transactionfee.info/charts/inputs-and-outputs-p2tr/
https://transactionfee.info/charts/transactions-spending-taproot/

If you want to support Taproot adoption and want to have your own Taproot addresses, follow this Create Taproot address for your Bitcoin