Why do Bitcoins have different addresses?
Which of these addresses should be used? (continuation)
03 Segregated Witness Address (Native SegWit) Address
Before introducing this type of address, we need to introduce the key technology inside it - Segregated Witness (SegWit). As the name suggests, Segregated Witness isolates the witness data (witness) and processes it separately.
A significant advantage of doing so is that it reduces the size of transaction information, thereby reducing transaction fees. Another benefit brought by the reduction in size is that the upper limit of Bitcoin block transaction size has been increased from 1 MB to 4 MB.
The characteristic of the Segregated Witness address is that the address starts with "bc1".
04 Taproot address (Taproot)
The advantages of Taproot addresses are privacy and efficiency in complex transaction scenarios. Compared with Native SegWit, it uses the Schnorr algorithm to replace the elliptic curve digital signature algorithm. The former is more efficient in batch transaction scenarios and improves the privacy of multi-signature wallets.
The main root address is characterized by the address generally starting with "bc1q".
