Summary
TLDR: The article explores the different standardized on-chain methods for receiving bitcoin, including P2PK, P2PKH, P2MS, P2SH, P2WPKH, P2WSH, Nested SegWit, and P2TR. Each method has unique features and advantages, with P2TR being the newest address type introduced in November 2021. The article also includes a reference chart for easy comparison.
Key Points
1. P2PK is the original method of receiving bitcoin, where coins are paid directly to an exposed public key. However, it is no longer used due to being more expensive, less private, and less secure compared to newer methods.
2. P2PKH addresses, which utilize an address and contain a checksum to prevent typos and lost bitcoin, are currently responsible for receiving and securing 43% of the mined bitcoin supply.
3. P2TR, the newest address type introduced by the Taproot soft-fork, utilizes a digital signature algorithm called Schnorr and offers advantages such as additional transaction fee reductions and increased privacy.