Understanding Bitcoin Address Types: A Deep Dive into P2PK, P2PKH, P2SH, and More.
Bitcoin has evolved significantly in terms of how transactions and addresses are handled on the blockchain. Initially, transactions used the Pay-to-Public-Key (P2PK) method, where bitcoin was directly sent to a public key. This method, exemplified by the first transaction between Satoshi Nakamoto and Hal Finney, has been phased out due to its cost, privacy issues, and security concerns.
Following P2PK, Pay-to-Public-Key-Hash (P2PKH) became the standard. Introduced shortly after Bitcoin's launch, P2PKH addresses improved security and efficiency by sending bitcoins to a hashed version of the public key. These addresses start with the number 1 and remain prevalent, holding a significant portion of the bitcoin in circulation.
As bitcoin's ecosystem grew, more complex transaction types were developed, such as Pay-to-Script-Hash (P2SH), which was implemented via a soft fork. P2SH addresses, starting with the number 3, allow for more flexible and secure arrangements, like multisig setups, where multiple signatures are required to spend bitcoins. This method enhances security by not revealing the spending conditions until the transaction occurs.
The introduction of Segregated Witness (SegWit) marked another major development. SegWit addresses, starting with "bc1q" for Pay-to-Witness-Public-Key-Hash (P2WPKH) and Pay-to-Witness-Script-Hash (P2WSH), help reduce transaction fees and block space usage. These addresses represent an advancement in the efficiency and cost-effectiveness of Bitcoin transactions.
Nested SegWit addresses were a temporary solution used during the SegWit adoption phase, allowing transactions from non-SegWit entities to SegWit addresses by wrapping them in P2SH addresses. This was crucial for encouraging broader adoption of the cheaper SegWit format.
The most recent development is the introduction of Pay-to-Taproot (P2TR) addresses with the Taproot update, which further reduces transaction fees and enhances privacy with Schnorr signatures. P2TR addresses, identified by a "bc1p" prefix, are designed to make multisig transactions indistinguishable from singlesig ones, adding another layer of privacy.
Understanding these developments is vital for anyone engaged in Bitcoin transactions, offering insights into how security, efficiency, and privacy have evolved in the Bitcoin network.
#Bitcoin #Blockchain #SegWit #Taproot #P2PKH #P2SH
oxhak / Ox HaK
npub1sxe…z7z7
2024-04-24 09:39:29
Author Public Key
npub1sxexewvzysc3affq4yzzh7w8e3udyujap2vlj7t6lkdg5dvhp24q4dz7z7Published at
2024-04-24 09:39:29Event JSON
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"pubkey": "81b26cb98224311ea520a9042bf9c7cc78d2725d0a99f9797afd9a8a35970aaa",
"created_at": 1713944369,
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"content": "Understanding Bitcoin Address Types: A Deep Dive into P2PK, P2PKH, P2SH, and More.\n\nBitcoin has evolved significantly in terms of how transactions and addresses are handled on the blockchain. Initially, transactions used the Pay-to-Public-Key (P2PK) method, where bitcoin was directly sent to a public key. This method, exemplified by the first transaction between Satoshi Nakamoto and Hal Finney, has been phased out due to its cost, privacy issues, and security concerns.\n\nFollowing P2PK, Pay-to-Public-Key-Hash (P2PKH) became the standard. Introduced shortly after Bitcoin's launch, P2PKH addresses improved security and efficiency by sending bitcoins to a hashed version of the public key. These addresses start with the number 1 and remain prevalent, holding a significant portion of the bitcoin in circulation.\n\nAs bitcoin's ecosystem grew, more complex transaction types were developed, such as Pay-to-Script-Hash (P2SH), which was implemented via a soft fork. P2SH addresses, starting with the number 3, allow for more flexible and secure arrangements, like multisig setups, where multiple signatures are required to spend bitcoins. This method enhances security by not revealing the spending conditions until the transaction occurs.\n\nThe introduction of Segregated Witness (SegWit) marked another major development. SegWit addresses, starting with \"bc1q\" for Pay-to-Witness-Public-Key-Hash (P2WPKH) and Pay-to-Witness-Script-Hash (P2WSH), help reduce transaction fees and block space usage. These addresses represent an advancement in the efficiency and cost-effectiveness of Bitcoin transactions.\n\nNested SegWit addresses were a temporary solution used during the SegWit adoption phase, allowing transactions from non-SegWit entities to SegWit addresses by wrapping them in P2SH addresses. This was crucial for encouraging broader adoption of the cheaper SegWit format.\n\nThe most recent development is the introduction of Pay-to-Taproot (P2TR) addresses with the Taproot update, which further reduces transaction fees and enhances privacy with Schnorr signatures. P2TR addresses, identified by a \"bc1p\" prefix, are designed to make multisig transactions indistinguishable from singlesig ones, adding another layer of privacy.\n\nUnderstanding these developments is vital for anyone engaged in Bitcoin transactions, offering insights into how security, efficiency, and privacy have evolved in the Bitcoin network.\n\n#Bitcoin #Blockchain #SegWit #Taproot #P2PKH #P2SH",
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