Pay-to-Witness-Script-Hash (P2WSH)
A Pay-to-Witness-Script-Hash (P2WSH) is a type of transaction similar to a P2SH transaction in most ways, except that it uses SegWit.
A Pay-to-Witness-Script-Hash (P2WSH) is a type of transaction similar to a P2SH transaction in most ways, except that it uses SegWit. Like a P2SH transaction, a P2WSH transaction locks bitcoin to the hash of a script. In order to spend this bitcoin, the spender must present the script, called the RedeemScript, and any required signatures.
On a technical level, P2WSH actually describes the ScriptPubKey which is used to lock bitcoin to a SegWit script hash. A P2WSH transaction spends bitcoin which was previously locked to a P2WSH address. Since P2WSH is a SegWit transaction, when a P2WSH output is used as an input, the ScriptSig is moved to the Witness section and called the WitnessScript.
Pay-to-Witness-Script-Hash (P2WSH) 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-Script-Hash (P2WSH) and other protocol-level concepts to help investors understand the technology underpinning their Bitcoin holdings.
Frequently Asked Questions
What is Pay-to-Witness-Script-Hash (P2WSH)?
Pay-to-Witness-Script-Hash (P2WSH) 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-Script-Hash (P2WSH) important for Bitcoin?
Pay-to-Witness-Script-Hash (P2WSH) 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-Script-Hash (P2WSH) affect Bitcoin investors?
While Pay-to-Witness-Script-Hash (P2WSH) 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.
