P2PKH vs P2SH vs SegWit Vs Taproot

Bitcoin addresses are used to send and receive bitcoin transactions on the blockchain network. There are several different types of bitcoin addresses, each with their own unique features and uses.

The first type of bitcoin address is a standard address, also known as a "P2PKH" address. These addresses start with the number "1" and are the most commonly used type of address. They are compatible with all software and hardware wallets and can be used for both sending and receiving transactions.

The second type of bitcoin address is a multi-signature address, also known as a "P2SH" address. These addresses start with the number "3" and are used for transactions that require multiple signatures, such as those involving multiple parties or a trust. They are useful for creating a shared wallet, for example, and are also compatible with most software and hardware wallets.

The third type of bitcoin address is a "bech32" address, also known as "segwit" address. These addresses start with the number "bc1" and are a more recent type of bitcoin address. They are more efficient than standard addresses, with lower transaction fees and faster processing times. They are also more secure, as they are less prone to errors.

The last and most recent are Taproot "P2TR" addresses> Taproot is an upgrade to the Bitcoin protocol that aims to improve the privacy and scalability of the network. Taproot addresses will allow for the creation of more complex and private smart contracts on the blockchain. These addresses will use a new type of cryptographic signature called Schnorr signatures, which will allow for the combination of multiple signatures into a single signature. This will allow for the creation of more efficient and private multi-signature transactions, as well as the ability to hide the details of a contract from the blockchain.

Taproot addresses will also allow for the creation of "tapscript", a new scripting language that will enable more complex smart contract functionality. Overall, Taproot addresses are a major development in the evolution of the Bitcoin protocol and will greatly improve the privacy and scalability of the network.

• P2PKH was Implemented January, 2009
• P2SH was Implemented as a standard script April, 2012
• Segregated Witness (SegWit / Bech32) was activated August, 2017
• Taproot (P2TR) was activated November, 2021.

In conclusion, there are several different types of bitcoin addresses available, each with their own unique features and uses, but multi-signature, segwit, and taproot addresses offer additional security and efficiency.