Network fees

Native SegWit

Also called: SegWit, Bech32, bc1 address, P2WPKH

The Bitcoin address type starting with bc1q, which stores signature data more efficiently and so pays lower fees than older address types.

Segregated Witness (SegWit) changed how Bitcoin stores the signature part of a transaction, counting it at a discount toward the block's size limit. Transactions from SegWit addresses therefore pay lower fees. Native SegWit addresses use the bech32 format and start with bc1q; this type is called P2WPKH.

Bitcoin address types you'll see:

Starts withType
1Legacy (P2PKH)
3Script hash, often wrapped SegWit
bc1qNative SegWit (P2WPKH)
bc1pTaproot

All modern wallets can send to bc1q addresses. Bech32 also includes a checksum designed to catch typos.

Why it matters for a business

  • Lower fees on every payout and every sweep, because the transactions are smaller.
  • Fewer mistakes: the checksum catches most mistyped addresses before anything is sent.
  • Network check: a bc1q address is mainnet only. Bitcoin's testnet uses tb1q, so test and live addresses can't be confused.

On Valtu

Each wallet's Bitcoin address is Native SegWit, starting with bc1q. Bitcoin deposits are credited once 3 blocks deep by default, and payouts use replace-by-fee when they're slow. See Bitcoin on Valtu.

Related terms

Keep reading.

UTXOBitcoin's model of money: a wallet holds separate unspent coins of different sizes, and each payment spends whole coins and sends the remainder back as change. Replace-by-feeResending an unconfirmed Bitcoin transaction with a higher fee, spending the same coins, so only one version can ever confirm and nobody is paid twice. Blockchain addressA public identifier that can receive coins on a network, derived from a key pair; anyone can send to it, only the key holder can spend from it. ConfirmationsThe number of blocks added on top of the block containing a transaction; the deeper it is, the less likely it can be undone.

More in network fees: Native coin · Gas · Gas wallet · Nonce · TRON energy · TRON bandwidth · Dust. The whole glossary.

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