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Exodus - Segwit vs Native Segwit (Bitcoin segregated witness explained)

Thumbnail of the video “Exodus - Segwit vs Native Segwit (Bitcoin segregated witness explained)”
Community upload. AI output has not been independently verified.
Author: Exodus
Categories: Crypto
Tags: crypto
Views: 1 · Last viewed: 2026-10-13 22:53 UTC

Short Summary

Main recommendation: Choose between legacy and Native SegWit (Bech32) Bitcoin addresses based on wallet compatibility and fee preference; SegWit addresses generally mean lower network fees, while legacy addresses offer broader wallet support. The video explains that Bitcoin has three address types, and Exodus can send to and receive from all of them.

Key Points

  • Bitcoin originally had only one address format; legacy addresses, which start with "1", are the original format and are supported by essentially all wallets.
  • SegWit (Segregated Witness) was introduced around 2016–2017 during the block size debate, moving part of each transaction's data (the witness data) to a second layer to save space on the main chain.
  • Nested SegWit addresses start with "3", while Native SegWit addresses, also called Bech32 addresses, start with "bc1".
  • Not every wallet or service supports SegWit yet, so some can only send to legacy addresses.
  • If someone sends you Bitcoin from a SegWit address, your legacy address can still receive it.

Details Worth Noting

  • Concrete instructions: Check whether the wallet or service you use supports the address type you want before sending or receiving. In Exodus, you can receive to and send from legacy, nested SegWit, and Native SegWit addresses. Use a legacy address if you want maximum compatibility with older wallets and services. Use a SegWit address if you want lower network fees, but only if the other party's wallet supports SegWit.
  • Address prefixes make the type easy to identify: "1" means legacy, "3" means nested SegWit, and "bc1" means Native SegWit (Bech32).
  • Lower SegWit fees come from smaller transaction data included in the blockchain.
  • The speaker frames the choice as a personal preference: legacy for those who prefer the original format, SegWit for those prioritizing lower fees.

Bottom Line

Address type is a trade-off between compatibility and fees, and checking your wallet's support is the deciding step.