Pay-to-Witness-Public-Key-Hash (P2WPKH)
Pay-to-Witness-Public-Key-Hash (P2WPKH) is a type of ScriptPubKey which is used to lock bitcoin to a SegWit address.
Pay-to-Witness-Public-Key-Hash (P2WPKH) is a type of ScriptPubKey which is used to lock bitcoin to a SegWit address. A P2WPKH transaction is similar to a P2PKH transaction in most ways; it still locks bitcoin to the hash of a public key. The major difference is that P2WPKH uses SegWit.
This means that the ScriptSig—the script that unlocks the bitcoin—for all inputs is moved outside of the transaction body and into the Witness section and called the Script Witness. This data is still recorded on the blockchain, but the data incurs a lower fee than regular data, making SegWit transactions cheaper than regular transactions.
Pay-to-Witness-Public-Key-Hash (P2WPKH) is a Bitcoin protocol specification that defines technical standards for how Bitcoin software operates. Onramp's Bitcoin glossary provides detailed educational resources on Pay-to-Witness-Public-Key-Hash (P2WPKH) and other protocol-level concepts to help investors understand the technology underpinning their Bitcoin holdings.
Frequently Asked Questions
What is Pay-to-Witness-Public-Key-Hash (P2WPKH)?
Pay-to-Witness-Public-Key-Hash (P2WPKH) is a technical standard in the Bitcoin protocol that specifies how certain operations or data structures should be implemented. It helps ensure interoperability between different Bitcoin software implementations.
Why is Pay-to-Witness-Public-Key-Hash (P2WPKH) important for Bitcoin?
Pay-to-Witness-Public-Key-Hash (P2WPKH) improves Bitcoin's functionality, security, or efficiency. Technical standards like this ensure that all participants in the Bitcoin network follow consistent rules, maintaining network consensus.
How does Pay-to-Witness-Public-Key-Hash (P2WPKH) affect Bitcoin investors?
While Pay-to-Witness-Public-Key-Hash (P2WPKH) operates at the protocol level, Onramp ensures that clients benefit from these technical improvements through secure, up-to-date infrastructure for Bitcoin custody and transactions.
