Transition to Native Segwit (P2WSH) to Reduce Fees

What's Changing?

BitGo is changing from default wrapped segwit (P2SH-P2WSH) receive addresses to native segwit (P2WSH), which require 25% less data to spend - translating to lower fees. Since the beginning, BitGo has supported both native segwit and wrapped segwit Bitcoin addresses. However, many clients still use the wrapped segwit address type because it has previously been set as default, until now.

What Is Native Segwit?

Native segwit allows for more compact transactions, reducing the data size and facilitating faster processing. However, most wallets now support sending to bech32 addresses, which means wallet compatibility has significantly improved - allowing users to fully benefit from native segwit.

The Transition

We're making native segwit the default address type for our API. This change will roll out in the coming weeks - meaning API users will automatically create P2WSH addresses without additional configuration.

Flexibility for Our Clients

If you still prefer wrapped segwit, you can choose to revert by adding 'chain: 10' to your 'createAddress' call. Later this year, UI users will have the option to select the address type for wallets, giving you more control and flexibility.

Looking Forward

With the transition to native segwit, BitGo aims to lower transaction fees for all clients. This shift aligns with the broader industry trend, as wallet compatibility with native segwit continues to grow.

Stay tuned for further announcements, and thank you for choosing BitGo for your digital asset management needs.

Interested in learning more? Connect with us, today.