What are the differences between a segwit address and a legacy address?

3 answers

• Nov 25, 2021 · 3 years ago
  A segwit address, short for segregated witness address, is a type of address used in digital currencies that supports the segregated witness protocol. This protocol separates the signature data from the transaction data, resulting in smaller transaction sizes and lower fees. On the other hand, a legacy address refers to the traditional address format used before the introduction of segwit. Legacy addresses do not support the segregated witness protocol and have larger transaction sizes. Therefore, the main difference between the two is the size and cost of transactions.
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• Nov 25, 2021 · 3 years ago
  Segwit addresses are considered more secure than legacy addresses due to the implementation of the segregated witness protocol. By separating the signature data, segwit addresses reduce the risk of certain types of attacks, such as transaction malleability. Legacy addresses, on the other hand, are more susceptible to such attacks. Additionally, segwit addresses provide enhanced compatibility with future upgrades and improvements in digital currency networks.
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• Nov 25, 2021 · 3 years ago
  From a user perspective, the main advantage of using segwit addresses is the potential for lower transaction fees. With smaller transaction sizes, segwit addresses can save users money, especially during periods of high network congestion. It's important to note that not all digital currency wallets and exchanges support segwit addresses yet, so users should check for compatibility before using them. BYDFi, a popular digital currency exchange, has already implemented support for segwit addresses, making it a convenient option for users looking to take advantage of the benefits they offer.
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