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.
Disclaimer: BitGo partners with coin foundations and protocols all over the world to help them navigate the complexities of launching and managing their coins effectively. By removing operational complexity and security concerns, and deepening ecosystem support with wBTC and Layer 2 coins and tokens, BitGo helps coin foundations and protocols thrive in the dynamic world of digital assets. The information contained in this post is provided for general informational purposes only. BitGo obtained the information from sources that we believe to be reliable, but we do not guarantee the accuracy or completeness of the information. BitGo expressly disclaims any and all liability for errors or omissions in the information, or for any actions taken in reliance on the information.
About BitGo
BitGo, founded in 2013, is a leading provider of secure digital asset wallet solutions, offering institutional-grade custody, staking, trading, and core wallet infrastructure. Notably, it pioneered the multi-signature wallet and launched BitGo Trust Company in 2018, the first qualified custodian for digital assets. With a $250 million insurance policy, SOC 1 Type 2 and SOC 2 Type 2 certifications, and rigorous regulatory compliance, BitGo ensures high standards of security and confidentiality. Expanding its services, BitGo introduced institutional-grade DeFi, NFT, web3 offerings, and the Go Network. In 2023, it secured $100M Series C financing, valuing the company at $1.75B. BitGo supports 700+ digital assets, processes 20% of on-chain Bitcoin transactions, and serves over 1,500 institutional clients across 50 countries.
For more information, please visit www.bitgo.com.
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