Bitcoin addresses, which are the differences?


so I get many questions about the
differences between
the addresses in Bitcoin network. in fact I
think that there is still a little bit
of confusion and for this reason I
decided to prepare this short video to
explain and point out the differences
between them. okay so we start with pay
to public key hash. this is the legacy address, the addresses starting with 1. this is
the original address format which is
still in use nowadays. and this address
is a non-segwit compatible but you can
still send transaction to any segwit
address without any problem. in this
case fees are higher because transactions are
larger in size. all the wallets and all
exchangers support this kind of
address. then we have pay to script hash.
this is an address starting with 3 and
this enables more advanced features. and
in fact a common implementation is multi
signature addresses script which specifies multiple signatures to authorize the
transaction. and this address also enables non-native segwit transaction by
embedding a script inside. in this case
the transactions fees are lower because
the transactions are smaller in size. all
the wallet and all the exchangers
support this address. and then we have
finally bech32 address starting with
bc1. this is native segwit address; and
in this case the transaction is smaller
in size for this reason the fees are
cheaper and obviously this fact is
an incentive to use this kind of address
to widely use this kind of address. as
today in 2019 these addresses are
supported by quite all the wallets but
there are still some exchangers which do
not support yet this address. they are
for sure the best choice if you are
activating a new wallet; and you also can
easily upgrade all the addresses the new
ones by sending single you UTXOs
transaction to destination bech32
addresses.

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