Main Bitcoin address types:
1. Old address (P2PKH)
Old addresses, or pay-to-public key hashes, are the most common version. Since they start with 1, we can distinguish them.
A P2PKH address is just a hash of the public key from the private key.
When Bitcoin was released in 2009, it and P2PK were the only Bitcoin address types. Currently, it is the most space-consuming address type, which means it is the most expensive to send and receive.
2. Pay to Script Hash (P2SH)
Pay to Script Hash or P2SH addresses are addresses that start with the number 3.
Unlike the first on the list, these do not use the hash of the public key, but a script that involves certain conditions so that the funds can be used. The advantage is that it hides the issuer’s public key.
These spending conditions can be simple (like proving that you have the public key) or complex (only someone with the public key can spend bitcoins after a certain amount of time).
P2SH type addresses can take advantage of SegWit and save transaction fees when using this Bitcoin script.
One of the benefits of this is that they are about 26% cheaper than traditional addresses.
3. Segregated Witness Native (P2WPKH)
SegWit’s native address P2WPKH is an address that starts with bc1q.
This type of address reduces the amount of information stored in the transaction than previous addresses by keeping the signature and script out of the transaction, storing them in the token. Hence its name Segregated Witness.
With these addresses, we can save an additional 16% compared to P2SH and 38% compared to P2PKH. Hence, its popularity has increased considerably in recent years.
4. Taproot (P2TR)
Taproot addresses are addresses starting with bc1p.
The Taproot address is still quite new, as the soft fork required for implementation will not take place until November 2021.
These allow certain types of smart contracts to be made using Bitcoin addresses and improve privacy when using them in transactions.
when it comes to complex transactions, such as those involving multiple signatures, Taproot addresses help save a lot of space and become very cheap.
In the ComingChat wallet, check your bitcoin address, you can find that it starts with bc1p, which indicates that ComingChat has implemented the latest Taproot technology of bitcoin. This means better security, better privacy, and lower fees.