Legacy vs SegWit vs Native SegWit vs Taproot — What's the Difference?

When sending or receiving Bitcoin, you’ve probably seen addresses starting with 1, 3, bc1q, or even bc1p.
These formats aren’t just cosmetic — they represent major upgrades in Bitcoin’s transaction structure.

At wmiran.com, we support various Bitcoin address types and help users understand which to use — and why.
Here’s a clear breakdown of Legacy, SegWit, Native SegWit, and Taproot — and how they affect your fees, privacy, and compatibility.

1. Legacy (P2PKH)

• Starts with: 1

• Example: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa

• Introduced: Original Bitcoin format

• Also called: P2PKH (Pay to Public Key Hash)

Pros:

• Compatible with all wallets and exchanges

Cons:

• Higher fees (larger transaction size)

• No support for SegWit or Taproot features

Use case: Still accepted everywhere, but outdated for modern Bitcoin users

2. SegWit (P2SH-Compatible)

• Starts with: 3

• Example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy

• Introduced: 2017, during SegWit soft fork

• Also called: P2SH (Pay to sсript Hash)

Pros:

• Lower fees than legacy (partially SegWit-enabled)

• Compatible with most older platforms

Cons:

• Not fully optimized

• Still uses non-native transaction structure

Use case: Good middle ground — widely supported and more efficient than legacy

3. Native SegWit (bech32)

• Starts with: bc1q

• Example: bc1qxy2kgdygjrsqtzq2n0yrf2493p83kkfjhx0wlh

• Introduced: Full native SegWit implementation

• Also called: bech32

Pros:

• Lowest fees (smaller transaction size)

• Human-friendly: checksum reduces typos

• Better for batch transactions and scaling

Cons:

• Some old platforms still don’t support withdrawals to bc1q addresses

Use case: Ideal for everyday transactions and savings — supported by most modern wallets

4. Taproot (Native SegWit v1)

• Starts with: bc1p

• Example: bc1p5cyxnuxmeuwuvkwfem96l3s8vkwf0hx408vj3l

• Introduced: November 2021

• Also called: P2TR (Pay to Taproot)

Pros:

• Best privacy — complex scripts look like normal transactions

• Supports Schnorr signatures (smaller, faster)

• Smart contract flexibility without revealing details

• Great for multisig and Lightning Network

Cons:

• New — not yet fully supported on all exchanges and wallets

• Requires newer wallet versions

Use case: Advanced users, privacy-focused, Lightning users, or anyone wanting future-proof Bitcoin usage

Comparison Table

Example: Sending BTC from wmiran.com

Let’s say you’re withdrawing BTC after a swap at wmiran.com.

• Want maximum compatibility? Use a 3... SegWit address

• Want lower fees? Use bc1q...

• Want future privacy and contract features? Use bc1p... (Taproot)

Each has pros and cons — we recommend bc1q or bc1p for most modern users, depending on wallet support.

Final Thoughts

Understanding the difference between Bitcoin address formats helps you reduce fees, protect privacy, and stay compatible across platforms.

Bitcoin evolves — from 1... legacy to Taproot’s bc1p... addresses.
At wmiran.com, we support the evolution, helping users navigate these formats without hassle or KYC.

Choose the right format for your need — and take control of your Bitcoin experience.