Recently Binance announced support for segwit deposits. I see old address and lot of other options on the right with segwit in the end. Is it a new network? What are the other options mentioned on Binance to deposit BTC and are they similar to segwit?
On 2020-12-24, Binance announced support for deposits to native segwit addresses.
Segregated witness ("segwit") refers to a soft fork that activated a series of Bitcoin improvement proposals (BIPs) in 2017. Among other things, segwit introduced two new standard output types, Pay to Witness Public Key Hash (P2WPKH) and Pay to Witness Script Hash (P2WSH). These native segwit outputs are more blockweight efficient than prior equivalent output formats, but wallets had to be updated to create them.
After three years, receiving payments to native segwit addresses is considered best practice, and almost all wallets and services are able to send to native segwit addresses.
- Segwit is not a separate network as mentioned in the screenshot instead its a Bitcoin protocol upgrade that provides lower transaction fees. This is also mentioned in the "Tips" section on same page in Binance.
- Segwit is defined in BIP: 141,143,144,145 and 173 according to my understanding. In this context its just an address type you will use for BTC deposits on Binance.
- Most of the open source and self-custodial wallets support segwit. Example: Bitcoin Core, Electrum, Samourai, Wasabi, Bluewallet etc.
- Other things mentioned to deposit BTC: BEP2, BEP20 (BSC) and ERC20 are not associated with Bitcoin. It is misleading and you will need tokens on other chains to deposit using those addresses which is not same as bitcoin.
- You can read about benefits of segwit here: https://bitcoincore.org/en/2016/01/26/segwit-benefits/