Summary
Legacy and SegWit addresses are two types of addresses in the Bitcoin network that differ in format and functionality. SegWit addresses offer advantages in terms of lower transaction fees and better scalability compared to Legacy addresses. However, certain SegWit addresses (bech32) might not be compatible with all services, so users should be cautious when sending funds to make sure the recipient's service can receive funds at a SegWit address.
Table of contents
Differences between Legacy and SegWit Bitcoin addresses
My wallet shows Legacy addresses instead of SegWit addresses
Legacy Addresses:
Format: Legacy addresses start with the number '1'. For example, "1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa" is a Legacy address.
Size: Transactions from Legacy addresses tend to be larger in size, which means they take up more block space.
Fees: As a result, sending transactions from Legacy addresses usually incurs higher fees compared to SegWit addresses.
Compatibility: They are compatible with all Bitcoin wallets as they have been around since the beginning of Bitcoin.
SegWit Addresses:
Format: There are two types of SegWit addresses. One starts with '3' (P2SH format), which is more common, and the other starts with 'bc1' (bech32 format). For example, "3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy" is a SegWit address in P2SH format, and "bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq" is in bech32 format.
Size: Transactions from SegWit addresses are smaller in size or, when the same size as Legacy, effectively take up less block space due to a different calculation of 'weight' in the block.
Fees: As a result, sending transactions from SegWit addresses usually incurs lower fees compared to Legacy addresses.
SegWit was implemented as an upgrade to the Bitcoin network to enable better scaling solutions like the Lightning Network.
Although the Bitcoin.com Wallet app may show legacy address instead of SegWit address under "Transaction History", both addresses will belong to the same receiver. SegWit addresses start with 3 or bc1. Legacy addresses start with 1.
Legacy address sample screenshot:
Segwit address sample screenshot:
To verify that the transaction was delivered to the same receiver, please visit these links and check for Hex string.
If the Hex string comes up as the same result, that means both Legacy and SegWit address belongs to the same person and the BTC was delivered successfully.
As an enthusiast deeply immersed in the intricacies of the Bitcoin network, I can assure you that my expertise spans the evolution of Bitcoin addresses, specifically the transition from Legacy to SegWit addresses. This transition wasn't merely a cosmetic change; it brought about fundamental improvements in terms of transaction efficiency, fees, and scalability.
Let's delve into the nuances of Legacy and SegWit addresses to understand their differences:
Legacy Addresses:
- Format: Legacy addresses start with the number '1', making them easily distinguishable. For instance, "1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa" is a Legacy address.
- Size: Transactions from Legacy addresses tend to be larger, consuming more block space.
- Fees: Due to their larger size, transactions from Legacy addresses usually incur higher fees compared to SegWit addresses.
- Compatibility: Legacy addresses have universal compatibility with all Bitcoin wallets, given their historical presence since the inception of Bitcoin.
SegWit Addresses:
- Format: SegWit addresses come in two types. One starts with '3' (P2SH format), more common, and the other starts with 'bc1' (bech32 format). For example, "3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy" is a SegWit address in P2SH format, and "bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq" is in bech32 format.
- Size: Transactions from SegWit addresses are smaller or, when the same size as Legacy, effectively take up less block space due to a different calculation of 'weight' in the block.
- Fees: Sending transactions from SegWit addresses typically incurs lower fees compared to Legacy addresses, thanks to their optimized size.
SegWit was introduced as a crucial upgrade to the Bitcoin network, primarily to facilitate better scaling solutions like the Lightning Network. It has proven to be a key enabler in addressing the scalability challenges that Bitcoin faced.
The article also emphasizes the importance of caution when dealing with certain SegWit addresses, specifically those in bech32 format. While offering advantages, they might not be universally compatible with all services, making it vital for users to verify the recipient's capability to receive funds at a SegWit address.
In conclusion, the evolution from Legacy to SegWit addresses represents a significant step forward in enhancing the efficiency and scalability of the Bitcoin network, ushering in a new era of improved transaction processing and reduced fees. Users are encouraged to stay informed about these changes and exercise diligence when transacting with different address formats.
FAQs
Legacy and SegWit addresses are two types of addresses in the Bitcoin network that differ in format and functionality. SegWit addresses offer advantages in terms of lower transaction fees and better scalability compared to Legacy addresses.
Can I transfer my BTC from legacy to SegWit address as a normal BTC transfer? ›
Can I transfer BTC between legacy address, SegWit address and native SegWit addresses? You can transfer funds between a legacy address beginning with 1 and a SegWit address beginning with 3 in imToken, but not to a native SegWit address beginning with bc1, which is as yet not supported by imToken.
What happens if I send Bitcoin to a SegWit address? ›
It is advisable to monitor the progress of the transaction within your wallet or by using a blockchain explorer. Once the transaction is confirmed, the BTC will be successfully sent to the recipient's SegWit address. It is important to note that sending BTC to a SegWit address is irreversible.
What is the difference between default and legacy BTC address? ›
To put it simply: Default address has 30-40% less transaction fees than Legacy address while transaction speed is higher. But the Tangem wallet at the same time supports two types of addresses, as not all exchanges support SegWit addresses yet.
How do I know if my address is SegWit? ›
Bitcoin SegWit addresses typically start with a “3” or “bc1”. Addresses starting with “3” are known as Pay to Script Hash (P2SH), which supports SegWit. Addresses that begin with “bc1” are Bech32 addresses and represent native SegWit addresses that fully utilize the SegWit efficiency improvements.
Should I choose SegWit or Legacy? ›
Size: Transactions from SegWit addresses are smaller in size or, when the same size as Legacy, effectively take up less block space due to a different calculation of 'weight' in the block. Fees: As a result, sending transactions from SegWit addresses usually incurs lower fees compared to Legacy addresses.
How do I know if my Bitcoin is SegWit or legacy? ›
Bech32 addresses, also known as 'native SegWit' addresses, start with "bc1," while Legacy addresses start with "1". For example: Bech32: bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq.
What is the difference between BTC legacy and BTC SegWit? ›
If you send bitcoins to the Legacy address, the transaction will be generated with the previous versions, and any node can include it in the blockchain. For a user, the difference is that SegWit transactions are processed faster, and fees are about 30-40% lower as a single SegWit block can store more transactions.
What happens if I send Bitcoin cash to a Bitcoin address? ›
Because both BTC and BCH can sometimes share a similar address format (Legacy address format), it is possible to accidentally send Bitcoin Cash (BCH) to a Bitcoin (BTC) address. If you do this, the funds will only exist on the BCH blockchain; they won't appear on the BTC blockchain.
What is the difference between BTC and SegWit BTC? ›
SegWit reduced the size of each BTC transaction's data. It achieved this by separating part of the transaction signature data from the actual transaction data. This made transactions lighter in size, allowing for more transactions to fit into a block. SegWit wallet addresses start with “3”.
When in doubt, a legacy address provides the most peace of mind and is most widely supported. While you may be limited by the client you are using, if it lets you sign and send the transaction, you have nothing to worry about. Bitcoin addresses are cross-compatible and each type should be able to send to one-another.
What is a legacy BTC address starting with? ›
However, support for this in applications is still encouraged to be compatible with older legacy wallets that have not upgraded to new address formats. Legacy addresses begin with the number 1, can contain upper and lowercase characters, and are case sensitive.
Do old Bitcoin addresses work? ›
Yes. Funds sent to old addresses will still belong in your BitPay wallet balance. Although not recommended, you can reuse old addresses to manage funds in your BitPay wallet.
Can you send Bitcoin to SegWit? ›
After the SegWit upgrade, your existing Bitcoin addresses will still be usable, and you will be able to send and receive Bitcoin with them as before. SegWit addresses are backwards compatible, which means they can interact with legacy addresses.
How do I check my Bitcoin address? ›
You can find your Bitcoin address by tapping Bitcoin from the app's home screen, then hitting the "Receive" button on the toolbar of your Bitcoin (BTC) asset view screen. If you have multiple Bitcoin wallets, select the wallet you want from the drop-down menu at the bottom of the asset view screen.
How to transfer Bitcoin to cash app? ›
Deposit Bitcoin
- Tap the Money tab on your Cash App home screen.
- Tap the Bitcoin tile.
- Select Deposit Bitcoin to get started.
On the other hand, users can normally transfer their Bitcoins from Legacy to SegWit, implying that SegWit is compatible with non-native SegWit transactions. Speaking of Native SegWit, it reinforces extensive hardware wallets and software but is compatible only with a few exchanges.
What is the best way to transfer Bitcoin to another wallet? ›
How To Send Bitcoin in 3 Simple Steps
- Retrieve and Enter the Recipient's Bitcoin Address. To send BTC you'll need to have a bitcoin wallet address to send it to. ...
- Enter the Amount of Bitcoin To Transfer. Sending Bitcoin also requires you to specify the amount of BTC that you wish to send. ...
- Confirm and Send Your Bitcoin.
Yes, you can use the same bitcoin wallet address more than once to receive payments. In fact, it is common practice for users to reuse the same wallet address for multiple transactions. However, it is important to note that using the same bitcoin address repeatedly can compromise your privacy and security.
