delvingbitcoin

Revisiting BIP21

Revisiting BIP21

Original Postby juscamarena

Posted on: April 26, 2024 20:36 UTC

The discussion revolves around the preferences and technical decisions involved in choosing cryptocurrency address formats for transaction purposes.

The consensus leans towards selecting address formats that align with the receiver's comfort, balancing both compatibility and cost-effectiveness. The experience shared from a tenure at Bitrefill provides a practical perspective on this matter. At Bitrefill, the transition to using SegWit bech32 addresses for payment experiences was implemented without encountering any significant issues, indicating a successful adoption of a format that is both efficient and forward-looking. However, there was an expressed interest in having the flexibility to set Taproot addresses as an option. This would allow wallets that support it to choose Taproot for transactions, potentially optimizing for both advanced functionality and lower costs. The underlying theme suggests a careful consideration of technological advancements in address formats, aiming to leverage improvements while also accommodating varying levels of compatibility across different wallets.