CoolWallet’s Upcoming Support for Bitcoin Nested SegWit (BIP49)
Introduction
CoolWallet is excited to announce that we are developing support for Bitcoin Nested SegWit (BIP49) in our CoolWallet Pro hardware wallet, alongside other previous upgrades like Bitcoin Native and Custom SegWit. Bitcoin Nested Segwit serves as a bridge between legacy and new BTC address formats. Also in the current pipeline is support for the Taproot upgrade. Please note that our entry-level model CoolWallet S will not support BIP49.
Here’s a quick primer on the different Bitcoin address formats, BIP49, and why they’re important.
CoolWallet Integrates Bitcoin Nested SegWit (BIP49)
CoolWallet has supported legacy addresses since our first Bitcoin-only mobile hardware wallet (the first of its kind) launched in 2016. Now, it’s time to support Nested Bitcoin Segwit, the bridge between the two.
With the integration of Bitcoin Nested SegWit (BIP49), CoolWallet users can now enjoy enhanced security through multi-signature transactions and reduced transaction fees. This initiative is part of our commitment to providing secure and user-friendly transaction processes.
Bitcoin Address Formats
Have you noticed that not all BTC addresses with the same letters and numbers? Unlike Ethereum and EVM chain addresses which all begin with “0x”?
That’s because Bitcoin addresses come in three main formats:
- Legacy (P2PKH) Addresses: Original format, addresses start with “1”.
- Nested SegWit (P2SH) Addresses: Bridging format, addresses start with “3”, offering reduced fees and enhanced security.
- Native SegWit (Bech32) Addresses: Latest format, addresses start with “bc1q” (Taproot addresses use”bc1p”), offering the lowest fees.
What are Nested SegWit (P2SH) Addresses?
Nested SegWit (P2SH) addresses are a type of Bitcoin address that starts with the number “3”. They were born out of the Segregated Witness (SegWit) protocol upgrade and offer reduced fees and enhanced security through multi-signature capabilities. They are the middle ground between Legacy and Native SegWit addresses, providing some (but not all) of the benefits of Native SegWit.
