Na why people go dey use SegWit addresses

[knowngunman]

Original Topic: Why people should be using SegWit addresses
Author:1miau

Four years ago, the SegWit (https://en.bitcoinwiki.org/wiki/Segregated_Witness) don dey  and one of the koko benefits be say the transaction fees go reduce, transactions wey dey come from SegWit addresses dey attract lower fees.

The Bitcoin addresses get many different formats. If you look at the beginning of the address, you go see the prefix. This fit show you the kind of address wey e be.

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)

1... the addresses wey dey start with 1 na the regular standard Bitcoin address. The addresses wey get dis prefix no be SegWit.
3... If address start with 3, e fit be either SegWit or multisignature address. The only way to know whether na SegWit address or multisignature address na to check the details of the outgoing transaction.
bc1... The addresses wey start with bc1q na di native SegWit addresses. The ones wey start with bc1p na the Taproot addresses... The addresses na always SegWit.

A simple explanation about how to know whether  address na SegWit address, you fit check here: BTC addresses starting with "3" what are they ? simplified explanation.

Native SegWit or nested SegWit?

After reading wetin dey above, e go make you know wetin be the benefits of using SegWit addresses, but you fit still dey ask wetin dey different between native SegWit address (bech32, starts with bc1q...) / Taproot Address (bech32m, starts with bc1p) and nested SegWit address (P2WPKH-P2SH / P2WSH-P2SH, starts with 3....). For us, e dey important make we know say using native SegWit address or Taproot address go give us even lower fees pass using nested SegWit address.

Sending from nested SegWit address (3...) compared to normal legacy address (1...) go dey 26% or more cheaper. Sending from native SegWit address (bc1q...) compared to normal legacy address (1...) go dey 38% or more cheaper. The exact amount of percentage wey you go save depend on how many inputs the address get, so if the address get many inputs, you fit save more.

In November 2022 we get new type of address wey dem call Taproot-Address (bc1p...). E dey the same level with native SegWit address (bc1q...) when we talk about fee savings. If you dey use Taproot-Address send, the fee go be around 38% or more cheaper pass if you dey use normal legacy address (1...). You fit see exact details about savings wey Taproot go bring by visiting here, provided by Charles-Tim.
One of the main reasons why native SegWit and Taproot dey similar na because dem both come from the same Witness Programm (bech32 / bech32m).

Wetin be additional advantages for using SegWit address?
In addition to the lower transaction fees wey you go get for your own transactions, you go also help the Bitcoin network when you use  SegWit address because more transactions go fit into one block so, the Bitcoin network go fit process more transactions per second, and dis go benefit every participant.

Any disadvantage dey?
If you don use Bitcoin for some centralized services, and you wan send am to your own bech32 SegWit address, dem fit reject am as invalid because some of the websites wey dey centralized never update. Dem no go fit recognize this new bech32 address format. However, this one only apply to bech32 addresses, but not nested SegWit address. Nested SegWit address dey compatible for everywhere. Most of the services dey go eventually fully support bech32 address format. This one na just information incase you dey confused about why some centralized services dey reject (BTC) bech32 addresses. You fit see the different address formats wey different platforms and services dey support, by visiting this link: https://en.bitcoin.it/wiki/Bech32_adoption

Stats wey dey interesting about SegWit
As with other aspects of Bitcoin, we get statistical data wey dey valuable about SegWit, like the information wey dey available for transactionfee.info.
On top the other information, you fit find the share of Bitcoin transactions wey dey use SegWit:


https://transactionfee.info/charts/payments-spending-segwit/
Currently dey around 86%.


https://transactionfee.info/charts/inputs-types-by-count/
Note: the total numbers of native SegWit (bech32, purple and dark blue) no too high compared to nested SegWit (light blue and orange)

Conclusion

As a matter of fact, choosing a bech32 SegWit address go be your best option for the long term. The advantages of using bech32 address dey important. The biggest advantage na say the fees dey lower, and e go also make the Bitcoin network dey more efficient.

[1714645083]

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[1714645083]

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[Doan9269]

Thanks for bringing this information to the local board, but if i may ask, am yet to get the clear picture of the reason why you did this, is it for the purpose of local board translation or that you just wish to make a repetition on what had already been discussed, maybe this is just something you would have just make a recommendation for by providing the reference link to his thread, this is just my own opinion although.

[Fivestar4everMVP]

Thanks for bringing this information to the local board, but if i may ask, am yet to get the clear picture of the reason why you did this, is it for the purpose of local board translation or that you just wish to make a repetition on what had already been discussed, maybe this is just something you would have just make a recommendation for by providing the reference link to his thread, this is just my own opinion although.

It is for translation purposes, this is a normal thing in almost every local board on this forum.
As you or if you are a Nigeria and very good with the Nigerian pigin English, you are free to find important and very informative threads from the global boards, like the bitcoin discussion board, Development & Technical Discussion board, Meta board and so on.. And translate that thread and post it here in the local board, not forgetting to mention the author of the thread you translated, and also link to the original thread.

I believe you understand the explanation and that this should clear every doubt you have or had.

[Charles-Tim]

1... the addresses wey dey start with 1 na the regular Bitcoin address standard. The addresses wey get dis prefix no dey   support SegWit.

This is what 1miau posted in the OP: Addresses, starting with 1 are standard Bitcoin-Addresses and are never SegWit.

It means the addresses that start from 1 are standard bitcoin addresses and they are not segwit addresses.

It should be like this:
1... the addresses wey dey start with 1 na the standard bitcoin addresses. The addresses wey get dis prefix no be segWit.

As a matter of fact, choosing a bech32 SegWit address go be your best option for the long term. The advantages of using bech32 address dey important.

It is worth knowing that if addresses that start from bc1q are bech32, addresses that start from bc1p (pay-to-taproot) are bech32m addresses.

[knowngunman]

Thanks for bringing this information to the local board, but if i may ask, am yet to get the clear picture of the reason why you did this, is it for the purpose of local board translation or that you just wish to make a repetition on what had already been discussed, maybe this is just something you would have just make a recommendation for by providing the reference link to his thread, this is just my own opinion although.

From the top, you'll see the link to the original thread and yes it is for translation purpose.

I believe you understand the explanation and that this should clear every doubt you have or had.

Thank you for the explanation on my behalf. I don't think it's possible for someone with such rank not aware of translating thread in the forum.

This is what 1miau posted in the OP: Addresses, starting with 1 are standard Bitcoin-Addresses and are never SegWit.

It means the addresses that start from 1 are standard bitcoin addresses and they are not segwit addresses.

It should be like this:
1... the addresses wey dey start with 1 na the standard bitcoin addresses. The addresses wey get dis prefix no be segWit.

Thank you for the correction boss. I don effect the correction.

[Broadanbig]

Welcome done OP for this wonderful work you have done here. I really commend you for this efforts of yours to making sure that this topic is translated into our local parlance for members to see it and read. Fir the first time I am seeing this topic and I must say it is educative and expository. Anyone who wants to really understand how the segwit works should be able to see this here and to read it as well. I can attest that this would assist our members from the local board understand more about the Bitcoin segwit wallet address functionality and how to use it.