I keep seeing things like "SegWit addresses are lower tx fees". Can someone explain why/how that is? Why does sending BTC to address A (old style) vs address B (SegWit style) incur higher tx fees? Aren't both transactions going on to the same blockchain and being processed by the same miners to be added to the same block?
Allow us to do a brief contrast to see how an awful lot rate you can save through the usage of segwit pockets. For everyday bitcoin transactions, the concern depends on price/(tx length). For segwit, a brand new concept called weight become introduced, so what topics now could be fee / (digital size) .
The above shows the digital length of various sorts of bitcoin transaction. i have referred to usually used one entry, two output transactions for numerous types. right here are the transaction ids for reference regular, Segwit in P2SH, native Segwit. As you may see you can get a cool 38% discount the usage of native segwit !! using segwit wallets in truth has a two effect:
-You keep on transaction fees
-You transaction is smaller taking less space. This allows greater transactions to get into blocks. This reduces mempool congestion and decreases the common transaction price, because you are now competing with less unconfirmed tx to get into blocks.