This helpsfaster transactions as well as added security. Basically, use your SegWit address to receive deposits if you want lower fees when it's time to send the BTC out. Another main benefit of SegWit addresses is that they are backwards compatible, meaning that you are able to send funds from a Bitcoin SegWit address to a Legacy Bitcoin address. The Bitcoin Cash hardfork was mainly a response to the SegWit update. Instead of implementing SegWit, Bitcoin Cash developers chose to increase the block size of the blockchain. Looking at the growth of Bitcoin vs. Bitcoin Cash since the split, however, it seems as if Bitcoin (with SegWit) will continue to be the dominant chain. If you incorrectly send Bitcoin Cash (BCH) to a SegWit (BTC) address, your funds will not be recoverable. The changes introduced by SegWit are incompatible with Bitcoin Cash, and it is impossible to access any Bitcoin Cash which has been lost in this way.
Bitcoin gold segwit addressbitcoin core - How to generate SegWit address - Bitcoin Stack Exchange
Also will I be able to redeem those outputs and send them to a "legacy" address? If so, will this second transaction be accepted by older, non-SegWit clients?
Note that this command is not available until SegWit is active on the network, as before that time, such outputs would be spendable by everyone. Since Bitcoin Core v0. Yes, it is a softfork. Every new transaction is valid according to the old rule. If not, a chain split would occur. Older clients may not see the transaction until it is confirmed, however.
Sign up to join this community. The best answers are voted up and rise to the top. How to generate SegWit address Ask Question. Asked 3 years, 5 months ago. Active 1 year, 4 months ago. Viewed 11k times. Paul Paul 1 1 gold badge 3 3 silver badges 10 10 bronze badges. It doesn't seem to be complicated as per the response below. Active Oldest Votes. Pieter Wuille Pieter Wuille That means I need to generate a "legacy" address and then pass it to addwitnessaddress and it will return a "segwit" address?
And I will be able to send the bitcoins received in that "segwit" address to any other address and older clients will not complain they will "receive" those bitcoins? Yes to all of those. Its adoption has quickly been taken up since and it started becoming the new standard. It did this by separating certain data of the transaction signature from the transaction. By making transactions lighter in size, more transactions can fit into a single Bitcoin block.
This in turn makes the Bitcoin network more scalable and its transactions faster. Even more, it immensely reduces the transaction fees for each Bitcoin transaction! SegWit also enabled second layer scaling solutions, leading to the birth of the Lightning Network. Native SegWit — also known as bech32 — is the latest step in the address formats. It is even more weight-efficient than its predecessor. This means having an even faster transaction speed versus SegWit transactions, better scalability and even lower fees per transaction.
To add to this, bech32 has better error-detection and makes addresses lowercase only for better readability.