Bitcoin Address Types Explained: From Legacy Addresses to Taproot
Bitcoin address types can often be identified by the first characters users see: 1, 3, bc1q or bc1p.
Those prefixes are not cosmetic.
They represent different ways of constructing Bitcoin transaction outputs, introduced during different stages of Bitcoin’s development. Legacy addresses beginning with 1 date back to Bitcoin’s earliest design. Addresses beginning with 3 introduced Pay-to-Script-Hash. Native SegWit addresses normally begin with bc1q, while Taproot addresses begin with bc1p.
The differences affect compatibility, transaction structure, block-space efficiency and the kinds of spending conditions a wallet can use.
But Bitcoin address types are also surrounded by oversimplifications.
An address beginning with 3 is not automatically a SegWit address.
A bc1q address is not simply an “older version” of a bc1p address in the sense that one is universally inferior.
And Taproot does not automatically produce lower transaction fees than Native SegWit in every simple payment.
Understanding those distinctions is important before moving Bitcoin between wallets, exchanges or self-custody devices.
For a broader explanation of transactions, keys, UTXOs and Bitcoin’s network, see The News Ink’s Bitcoin Explained: Complete Guide and How Bitcoin Works.
Bitcoin Address Types at a Glance
| Address type | Common mainnet prefix | Encoding | Typical use |
|---|---|---|---|
| Legacy P2PKH | 1 | Base58Check | Traditional single-key payment |
| P2SH | 3 | Base58Check | Script hash, multisig or wrapped SegWit |
| Native SegWit P2WPKH/P2WSH | bc1q | Bech32 | SegWit version 0 |
| Taproot P2TR | bc1p | Bech32m | SegWit version 1 / Taproot |
The address prefix gives useful information, but it should not always be treated as a complete description of the wallet behind it.
For example, a Bitcoin address starting with 3 tells you that the output is P2SH.
It does not tell you whether the underlying redeem conditions represent traditional multisignature, wrapped SegWit or another supported script.
That distinction becomes important later.
What Is a Bitcoin Address?
A Bitcoin address is a human-readable representation that allows someone to construct a transaction output paying Bitcoin under particular spending conditions.
It is useful to think of an address as a payment instruction rather than a bank account number.
Bitcoin itself operates through transaction outputs and scripts.
A wallet converts those technical structures into addresses that humans and applications can copy, display as QR codes and use when creating payments.
When somebody sends Bitcoin to your address, Bitcoin does not move coins into a digital folder bearing that address.
Instead, the transaction creates an output with spending conditions associated with the address type.
Your wallet manages the keys and other information required to satisfy those conditions later.
The News Ink’s Bitcoin Wallets Explained covers this relationship between wallets, private keys and blockchain outputs in more detail.
Why Do Several Bitcoin Address Types Exist?
Bitcoin has evolved without simply replacing every older transaction format.
New capabilities have generally been introduced while keeping older valid outputs spendable.
That is why modern Bitcoin users can encounter several address generations at the same time.
The progression broadly looks like this:
Legacy P2PKH → P2SH → SegWit → Taproot
Each development addressed different limitations.
P2SH made complex scripts easier for senders to pay.
SegWit changed transaction structure, improved block-space efficiency and solved important forms of transaction malleability.
Taproot introduced SegWit version 1, Schnorr signatures and more flexible ways to conceal complex spending conditions until they are needed.
Older formats did not suddenly become invalid.
That backward-compatible development is why Bitcoin address types coexist today.
Legacy Bitcoin Addresses Starting With 1
A Bitcoin address starting with 1 on mainnet is normally a Pay-to-Public-Key-Hash, or P2PKH, address.
This is the classic Legacy Bitcoin address format.
The Bitcoin developer documentation describes P2PKH as paying to a hash derived from a public key. To spend the resulting output later, the owner provides the appropriate public key and a valid signature.
A Legacy address uses Base58Check encoding.
A familiar example structure looks like:
1...
The leading 1 results from the mainnet version byte used when the public-key hash is Base58Check encoded.
Legacy Bitcoin address types remain valid.
Bitcoin did not disable them when SegWit or Taproot arrived.
Their main disadvantage is efficiency.
Spending P2PKH outputs generally consumes more block space than comparable modern single-signature SegWit spending.
That can translate into higher Bitcoin transaction fees when the same sat/vB fee rate is applied.
Does a Legacy Address Mean the Bitcoin Is Less Secure?
Not simply because the address starts with 1.
This is an important distinction.
Legacy and newer Bitcoin address types use different transaction constructions, but seeing a 1 prefix does not by itself tell you that a user’s private key is weak or compromised.
Security depends heavily on:
- key generation;
- wallet software;
- backups;
- signing devices;
- operational practices;
- and whether the private key remains secret.
Newer address formats primarily brought improvements in efficiency, extensibility and transaction design.
Users should therefore avoid describing every Legacy output as inherently unsafe.
The stronger practical argument for moving toward newer formats is generally efficiency and modern wallet functionality.
Bitcoin Addresses Starting With 3
A Bitcoin address starting with 3 on mainnet represents Pay-to-Script-Hash, or P2SH.
P2SH was standardized through BIP 16 and its address format through BIP 13.
Instead of paying directly to a public-key hash, P2SH allows a sender to pay to the hash of a script.
The spender later reveals the appropriate redeem script and satisfies its required conditions.
This made more complex Bitcoin transactions much easier to use.
The sender did not need to understand all of the conditions behind the script.
The sender only needed the P2SH address.
A Bitcoin Address Starting With 3 Is Not Necessarily SegWit
This is one of the most important misconceptions about Bitcoin address types.
You will often see addresses beginning with 3 described as:
Nested SegWit addresses
That description can be correct.
But it is not universally correct.
P2SH existed before SegWit.
It was designed as a general script-hash mechanism.
P2SH can be used for things such as traditional multisignature scripts.
After SegWit was introduced, developers also used P2SH to wrap SegWit witness programs.
This allowed older wallets and services that understood P2SH but did not understand native Bech32 addresses to send funds to SegWit-capable wallets.
So:
all P2SH addresses start with 3 on mainnet, but not every address starting with 3 represents wrapped SegWit.
The prefix alone cannot reveal the complete redeem script before the output is spent.
Why Wrapped SegWit Existed
When SegWit was introduced, not every wallet, exchange or payment service immediately understood the new native address format.
A sudden requirement that every sender upgrade would have created compatibility problems.
BIP 141 therefore supports a SegWit witness program nested inside P2SH.
To an older sending wallet, the destination still looks like a familiar P2SH address beginning with 3.
When the recipient later spends it, SegWit rules apply to the wrapped witness program.
This transitional approach improved Bitcoin address compatibility.
However, it requires more block space than native SegWit because the P2SH wrapper adds data.
For users whose services fully support newer formats, native SegWit generally avoids that extra overhead.
What Are Native SegWit Addresses?
Native SegWit Bitcoin address types were standardized using Bech32 in BIP 173.
On Bitcoin mainnet, they begin with:
bc1
The most familiar native SegWit addresses begin with:
bc1q
These represent SegWit version 0 outputs.
BIP 141 defines two major version-0 witness programs:
- P2WPKH, Pay-to-Witness-Public-Key-Hash;
- P2WSH, Pay-to-Witness-Script-Hash.
A P2WPKH address typically represents a relatively straightforward single-key payment.
P2WSH allows more complex scripts.
Both can appear as bc1q addresses because both are witness version 0.
Why Does Native SegWit Usually Reduce Fees?
SegWit changed how witness information such as signatures is counted toward Bitcoin’s block-weight limit.
Witness data receives a lower effective weight than equivalent non-witness transaction data.
That makes spending many SegWit outputs more block-space efficient.
For a basic comparison, Bitcoin Optech estimates a traditional P2PKH input at approximately 148 vB, compared with around 68 vB for a P2WPKH input.
That is a major difference.
Because Bitcoin transaction fees are largely determined by:
virtual transaction size × fee rate
a smaller transaction can cost less at the same sat/vB rate.
This is why Native SegWit is usually a better choice than Legacy when modern wallet compatibility is available.
Why Is Bech32 Different From Base58Check?
Legacy and P2SH Bitcoin address types use Base58Check.
Native SegWit introduced Bech32.
Bech32 was designed specifically with human-readable addresses and error detection in mind.
BIP 173 notes several motivations, including:
- improved error detection;
- avoiding visually ambiguous mixed alphabets;
- easier QR-code encoding;
- and better suitability for native SegWit.
Bech32 addresses normally appear in lowercase.
They also avoid some visually confusing characters used in broader alphanumeric systems.
The important practical distinction is simple:
1 and 3 addresses use the older Base58Check family; bc1 addresses use the Bech32 family of encodings.
What Is Taproot?
Taproot is a Bitcoin protocol upgrade activated on mainnet at block 709,632 in November 2021.
BIP 341 defines Taproot as a SegWit version 1 output system.
Taproot combines several important ideas, including:
- Schnorr signatures;
- key-path spending;
- script-path spending;
- Merkle-based script commitments;
- and improved privacy for complex spending conditions.
A Taproot output is normally known as:
P2TR — Pay-to-Taproot
On mainnet, its address begins with:
bc1p
That is the newest of the four Bitcoin address types most ordinary users are likely to encounter.
Why Taproot Uses bc1p Instead of bc1q
This is where bc1q vs bc1p becomes technically important.
Native SegWit version 0 uses Bech32 and produces addresses beginning with bc1q.
Taproot is SegWit version 1.
Version 1 and later witness addresses use a modified checksum format called Bech32m, standardized in BIP 350.
As a result:
bc1q → SegWit version 0 / Bech32
bc1p → SegWit version 1 / Bech32m / Taproot
The q and p are therefore not branding choices.
They emerge from the encoded witness version and address format.
bc1q vs bc1p Comparison
| Feature | bc1q | bc1p |
|---|---|---|
| Generation | SegWit | Taproot |
| Witness version | 0 | 1 |
| Encoding | Bech32 | Bech32m |
| Common output types | P2WPKH / P2WSH | P2TR |
| Signature system | Commonly ECDSA | Schnorr |
| Native SegWit | Yes | Yes, version 1 |
| Taproot | No | Yes |
| Mainnet prefix | bc1q | bc1p |
One subtle correction is important here:
Taproot did not replace SegWit.
Taproot itself uses Bitcoin’s SegWit framework.
It introduced a new witness version with new spending rules.
Calling the comparison simply “SegWit vs Taproot” can therefore be misleading.
A more precise description is:
SegWit v0 vs Taproot/SegWit v1.
Native SegWit vs Taproot: Is Taproot Always Better?
No.
This is one of the most common assumptions that needs correcting.
Taproot has important advantages, particularly for advanced scripts and multiparty constructions.
But it does not mean a simple single-signature Taproot transaction is automatically smaller than the equivalent P2WPKH transaction in every configuration.
Bitcoin Optech published a useful single-signature comparison.
| Component | P2PKH | P2WPKH | P2TR |
|---|---|---|---|
| Typical input | 148 vB | 68 vB | 57.5 vB |
| Typical output | 34 vB | 31 vB | 43 vB |
| 2-input, 2-output transaction | 374 vB | 208.5 vB | 211.5 vB |
The result surprises many users.
A Taproot input can be smaller than a P2WPKH input because a key-path spend uses an efficient Schnorr signature.
But a Taproot output is larger.
In Bitcoin Optech’s example, the complete 2-input, 2-output P2TR transaction is slightly larger than its P2WPKH equivalent.
Therefore:
Taproot does not automatically mean the lowest fee for every simple single-signature payment.
Its benefits go beyond that simple comparison.
Where Taproot Can Be Much More Efficient
Taproot becomes particularly interesting when spending conditions are more complicated than one ordinary key.
Before Taproot, complex Bitcoin scripts could reveal substantial information when spent.
Taproot allows an output to commit to multiple possible spending conditions while revealing only the path actually used.
If participants cooperate, they may be able to use a key-path spend that looks much simpler on chain.
That can improve both privacy and efficiency.
BIP 341 explains that Taproot was designed to reveal less information about alternative spending conditions while improving Bitcoin’s scripting flexibility.
This becomes particularly valuable in:
- multisignature systems;
- Lightning-related constructions;
- complex custody policies;
- and advanced smart-contract-like arrangements.
Taproot’s real value should therefore not be reduced to the slogan:
“bc1p is cheaper than bc1q.”
That is too simplistic.
Taproot Does Not Make Bitcoin Anonymous
Another common assumption is that a bc1p address makes transactions private.
Taproot improves certain aspects of transactional privacy.
For example, successful key-path spending can avoid exposing alternative script conditions.
But Bitcoin’s blockchain remains public.
Observers can still examine:
- transaction inputs;
- transaction outputs;
- amounts;
- timing;
- and blockchain relationships.
Taproot therefore improves specific privacy properties.
It does not turn Bitcoin into an anonymous network.
Bitcoin Address Compatibility Explained
Bitcoin address compatibility is one of the most practical reasons users need to understand these formats.
Modern Bitcoin wallets should generally recognize the major address types.
Very old software may not.
A Legacy sender should normally be able to pay a Legacy destination.
P2SH was deliberately introduced in a way that allowed relatively graceful compatibility with existing infrastructure.
Wrapped SegWit was later used specifically to bridge old P2SH-compatible software and SegWit.
Native Bech32 required sending software to understand Bech32.
Taproot then required software to understand the version-1 Bech32m format.
That creates a rough compatibility progression:
| Destination | Very old wallet compatibility | Modern wallet compatibility |
|---|---|---|
| 1 / P2PKH | Highest | Very high |
| 3 / P2SH | High | Very high |
| bc1q / SegWit v0 | Older software may reject | High |
| bc1p / Taproot | Older software may reject | Increasingly standard in modern software |
The important point is what “incompatible” normally means.
A wallet that does not understand bc1p should refuse to create the payment.
It should not attempt to improvise.
Never Manually Change an Address Prefix
A user might see a bc1p address rejected by an old exchange and think:
Can I change bc1p to bc1q?
No.
Never edit a Bitcoin address to make it look compatible.
The prefix is part of an encoded payment destination with checksum and witness-version information.
Changing characters does not convert one address type into another.
Likewise:
- changing a 1 to a 3;
- changing bc1q to bc1p;
- removing characters;
- or manually altering capitalization
does not produce a valid conversion.
If a service cannot send to a legitimate address type, generate a supported receiving address from a wallet that you control or use software that supports the intended format.
Bitcoin Addresses Are Not Interchangeable Strings
Two Bitcoin address types may ultimately be controlled by keys generated from the same wallet seed.
That does not mean the textual addresses are interchangeable.
For example, one hardware wallet could generate:
- a Legacy address;
- a wrapped-SegWit address;
- a native-SegWit address;
- and a Taproot address
from separate derivation paths associated with the same wallet backup.
Each address represents a different output construction.
Wallet recovery software also needs to know which derivation paths and script types to search.
This is one reason using reputable, standards-compatible wallets matters.
Address Type and Wallet Type Are Different Concepts
Another frequent misunderstanding is confusing Bitcoin address types with wallet categories.
A hardware wallet is not an address type.
A mobile wallet is not an address type.
A custodial exchange is not an address type.
A wallet may support several address formats simultaneously.
For example, one hardware device may be able to receive Bitcoin using both bc1q and bc1p addresses.
Likewise, a software wallet may support Legacy accounts for recovery while recommending Native SegWit for new receiving addresses.
Address type describes how the blockchain output is constructed.
Wallet type describes the software, hardware or custody arrangement managing the keys.
Address Type Does Not Determine Custody
A bc1p address does not prove that somebody uses self-custody.
An exchange can use Taproot.
A self-custody wallet can use Legacy.
Likewise, a Bitcoin address starting with 3 does not prove that an institution controls the funds.
Address format and custody are separate questions.
To understand who actually controls Bitcoin, ask:
Who controls the private keys or signing policy required to spend the output?
That matters much more than the visible prefix.
Which Bitcoin Address Type Has the Lowest Fees?
There is no universal answer without describing the transaction.
Legacy P2PKH is generally less efficient than modern SegWit alternatives.
P2SH-wrapped SegWit normally consumes more block space than equivalent Native SegWit because of the wrapper.
Native P2WPKH is extremely efficient for ordinary single-signature transactions.
Taproot has smaller key-path inputs but larger outputs than P2WPKH.
Complex Taproot spending can provide major efficiency advantages compared with older script constructions.
The fee therefore depends on:
- the types of inputs being spent;
- output types being created;
- number of inputs;
- number of outputs;
- script complexity;
- and current sat/vB fee rate.
Address prefix alone cannot tell you the complete final transaction cost.
A Simple Fee Comparison
Suppose the market fee rate is:
10 sat/vB
Using Bitcoin Optech’s approximate 2-input, 2-output single-signature examples:
Legacy P2PKH
374 vB × 10 sat/vB = 3,740 sats
Native SegWit P2WPKH
208.5 vB × 10 sat/vB ≈ 2,085 sats
Taproot P2TR
211.5 vB × 10 sat/vB ≈ 2,115 sats
This example demonstrates two important points.
First, Native SegWit and Taproot can both be dramatically more efficient than Legacy.
Second, P2TR does not automatically beat P2WPKH in every simple transaction.
For the wider mechanics behind these calculations, see The News Ink’s guide to Bitcoin transaction fees.
Can You Send From One Address Type to Another?
Usually, yes, provided the sending wallet understands the destination format.
Bitcoin does not operate separate blockchains for Legacy, SegWit and Taproot.
They are different output types on the same Bitcoin blockchain.
A modern wallet can therefore construct a transaction that:
- spends a P2PKH input;
- sends one output to bc1q;
- and sends change to bc1p,
provided the software supports all required script types.
The recipient does not need to use the same Bitcoin address type as the sender.
Compatibility depends mainly on whether the sending software recognizes and correctly constructs the destination output.
Can Bitcoin Sent to an Old Address Still Be Spent?
Yes, assuming the owner still has the necessary private keys or wallet information.
Legacy addresses did not expire when SegWit activated.
P2SH addresses did not expire when Taproot activated.
Bitcoin’s backward-compatible approach means valid historical outputs remain part of the blockchain and can continue to be spent according to their original rules.
Users therefore do not need to panic simply because old Bitcoin remains on a 1 or 3 address.
Moving funds may improve future transaction efficiency, but migration itself creates an on-chain transaction and therefore costs a network fee.
Should You Move Legacy Bitcoin to SegWit or Taproot?
Possibly, but not automatically.
Moving coins from Legacy outputs to a modern address can make future spending more efficient.
However, the migration transaction itself consumes block space.
If Bitcoin transaction fees are temporarily very high, moving coins purely for efficiency may be expensive.
There may also be:
- privacy considerations;
- tax or accounting considerations in some contexts;
- wallet-management issues;
- and operational risks when moving large balances.
Users should therefore understand why they are moving funds rather than assuming every old address must immediately be emptied.
Should New Users Choose bc1q or bc1p?
For many ordinary users, both can be reasonable if their wallet and the services they use fully support them.
Native SegWit bc1q has broad support and excellent single-signature efficiency.
Taproot bc1p provides newer functionality and can offer important privacy and scripting benefits.
The decision should depend on:
- wallet support;
- exchange compatibility;
- intended spending policy;
- expected transactions;
- and whether Taproot features are actually being used.
There is no need to choose Taproot merely because it is newer.
Likewise, there is little reason to insist on Legacy solely because it is older and familiar.
Common Bitcoin Address Mistakes
Assuming Every 3 Address Is SegWit
False.
A 3 prefix identifies P2SH.
Wrapped SegWit is one use of P2SH, not its entire purpose.
Assuming bc1 Means Only Native SegWit v0
Incomplete.
bc1 is the human-readable mainnet prefix used by native witness addresses.
bc1q represents witness version 0.
bc1p represents Taproot witness version 1.
Assuming Taproot Is Always Cheaper
False.
Taproot key-path inputs are efficient, but outputs are larger than P2WPKH outputs. The final transaction structure determines the fee.
Assuming an Address Reveals the Wallet Brand
False.
Many wallets can generate the same standardized Bitcoin address types.
Assuming You Can Edit an Address Into Another Format
False.
Address conversion cannot be performed by replacing the prefix.
Assuming the Address Stores Bitcoin
Technically misleading.
Bitcoin exists as spendable outputs on the blockchain. The address is a representation used to construct those outputs.
How to Check a Bitcoin Address Before Sending
When transferring Bitcoin, several basic checks reduce mistakes.
Verify that:
- the address came directly from the intended recipient;
- the sending wallet accepts the address as valid;
- you are using the correct Bitcoin network;
- the first and last characters match what you expect;
- malware has not replaced the copied address;
- the receiving platform supports the address format;
- you are not manually editing the address.
For a large transfer, some users choose to send a small test transaction first.
A test transaction adds an additional network fee, so it is not always necessary, but it can reduce operational risk when moving significant funds to a new destination.
Address Reuse Should Be Avoided
The fact that Bitcoin addresses can continue receiving payments does not mean they should normally be reused indefinitely.
Bitcoin’s developer guidance recommends using unique addresses where practical.
Address reuse can make it easier for blockchain observers to connect multiple payments and infer relationships between transactions.
Modern hierarchical deterministic wallets can generate many receiving addresses from one wallet backup.
That allows users to receive through fresh addresses without needing a new seed phrase for every payment.
Taproot does not eliminate this privacy principle.
BIP 341 also recommends avoiding key reuse.
Bitcoin Address Types Will Continue Evolving
Taproot is not necessarily the final stage of Bitcoin transaction development.
Bitcoin’s witness design supports versioning.
SegWit version 0 introduced P2WPKH and P2WSH.
Taproot uses version 1.
BIP 350 deliberately specifies Bech32m for witness versions 1 through 16 so future upgrades can potentially introduce additional spending rules while remaining recognizable to correctly implemented wallet software.
That does not mean versions 2 through 16 currently represent new standard payment types people should generate themselves.
They are reserved for potential future upgrades.
Users should rely on established wallet software rather than attempting to create experimental addresses manually.
Frequently Asked Questions
What are the main Bitcoin address types?
The four commonly encountered mainnet formats are Legacy P2PKH addresses beginning with 1, P2SH addresses beginning with 3, Native SegWit addresses beginning with bc1q and Taproot addresses beginning with bc1p.
What is a Bitcoin address starting with 1?
An address beginning with 1 on Bitcoin mainnet is normally a Legacy P2PKH address using Base58Check encoding.
What is a Bitcoin address starting with 3?
An address beginning with 3 is a P2SH address. It may contain wrapped SegWit, multisignature or another redeem script, so a 3 prefix does not automatically mean SegWit.
What is the difference between bc1q vs bc1p?
bc1q addresses normally represent SegWit version 0 outputs encoded using Bech32. bc1p addresses represent Taproot/SegWit version 1 outputs encoded using Bech32m.
Is Native SegWit better than Legacy?
Native SegWit is generally more block-space efficient than Legacy and can therefore reduce fees when comparable outputs are spent.
Is Taproot always cheaper than Native SegWit?
No. Taproot key-path inputs are smaller, but Taproot outputs are larger than P2WPKH outputs. Bitcoin Optech’s simple 2-input, 2-output example is actually slightly larger with P2TR than P2WPKH.
Can a Legacy wallet send to bc1q?
Only if the wallet software supports Bech32 destinations. Very old software may reject bc1q addresses even though the Bitcoin network supports them.
Can every wallet send to bc1p?
Modern support has expanded considerably, but older wallets and services may not understand Bech32m or Taproot addresses.
Can I change bc1p to bc1q manually?
No. Never modify an address prefix. bc1p and bc1q encode different witness versions and checksum requirements.
Do old Bitcoin addresses expire?
No. Valid Legacy and P2SH outputs remain spendable according to Bitcoin’s consensus rules as long as the owner retains the information required to authorize spending.
Conclusion
Bitcoin address types tell the story of how Bitcoin has evolved while preserving compatibility with earlier generations of the network.
The oldest familiar format is the Legacy P2PKH address beginning with 1.
P2SH introduced addresses beginning with 3, allowing payments to script hashes and later providing a useful compatibility wrapper for SegWit.
Native SegWit introduced Bech32 addresses, most commonly visible as bc1q, representing SegWit version 0 outputs such as P2WPKH and P2WSH.
Taproot introduced witness version 1 and the bc1p address format using Bech32m.
The progression looks simple:
1 → 3 → bc1q → bc1p
The technology behind it is more nuanced.
A 3 address does not necessarily mean wrapped SegWit.
bc1q and bc1p are not merely two cosmetic variants of the same address.
Taproot is part of the wider SegWit framework rather than something that replaced SegWit completely.
And Taproot should not be marketed as automatically cheaper than Native SegWit for every transaction.
For simple single-signature payments, Native SegWit P2WPKH remains extremely block-space efficient.
Taproot provides different advantages, particularly through Schnorr signatures, key-path spending and more private and flexible handling of complex spending conditions.
Compatibility also matters.
Legacy has the widest historical support.
Native SegWit is broadly supported by modern Bitcoin infrastructure.
Taproot support has expanded substantially, but old software may still reject bc1p destinations.
The safest rule is straightforward:
use an address type your receiving wallet supports, verify that the sending service recognizes it, and never manually modify an address to make it look compatible.
For most users, understanding Bitcoin address types is not about memorizing every opcode.
It is about recognizing what 1, 3, bc1q and bc1p actually mean, understanding how those formats affect compatibility and transaction efficiency, and avoiding the assumptions that can lead to confusion.
For the broader Bitcoin system, continue with The News Ink’s Bitcoin Explained: Complete Guide.
For related technical topics, read How Bitcoin Works, Bitcoin Wallets Explained and Bitcoin Transaction Fees Explained.
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