Address Type

Overview

Two addresses on the same network can have different types and therefore different spending or execution rules. In Bitcoin, address types can represent legacy public-key-hash outputs, script-hash outputs, SegWit outputs, or Taproot outputs. In account-based systems, the distinction may be between externally controlled accounts, contract accounts, system accounts, or token-specific account structures.

Address type affects compatibility, transaction size, fees, and wallet behavior. A service can support a network but reject certain newer address types. Some destinations can receive only the native asset unless a contract or token account exists. Others represent scripts with multiple signers or time-based conditions.

The type is generally encoded or inferred from the address format and network rules. Users should not manually convert an address between types unless the protocol provides a valid transformation. Changing visible characters does not create a compatible address.

Payment processors need address-type awareness to validate destinations, estimate fees, and prevent unsupported withdrawals. The payer should use the exact destination produced by the payment system.

In Bitcoin, types such as legacy public-key-hash, script-hash, native SegWit, and Taproot correspond to different locking conditions and encodings. On account-based chains, the practical distinction may be between user accounts, smart contracts, program-derived accounts, or token accounts.

Address type also affects what can safely be sent. A contract address may accept native currency but fail to handle a token transfer as expected. A token account may be valid only for one asset or owner. Wallets should identify the destination type through protocol rules and, when possible, simulate or validate the intended operation. Users should not assume that changing the visible prefix converts an address into another type.