What are the pros/cons of using the new bc1xxx segwit address vs the 3xxx segwit address?
1 Answer
Properties of the address format (Bech32 vs Base58Check):
- Pro: Better error detection (up to 4, and sometimes 5, characters can be wrong and the sender software will always detect it)
- Con: Longer
- Con: Not all software supports sending to such addresses
Properties of the output type (native segwit vs P2SH-wrapped segwit):
- Pro: Slightly cheaper to spend money received on such an address (no P2SH overhead)
- Pro: Very slightly cheaper to send to
- Con: Not all software supports creating such addresses