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Taproot and SegWit (Segregated Witness), side by side

Taproot

Taproot is a Bitcoin upgrade, activated in 2021, that added a new output type using Schnorr signatures. A coin can be locked to one key while also carrying hidden backup spending rules that are revealed only if used, so most spends look like ordinary single-signature payments.

What it means for you. When a Taproot coin is spent through its main key, the spend reveals neither the backup conditions nor whether several people's keys stood behind the signature, which keeps more of your security setup private on a public ledger. If a backup rule is used instead, only that one rule is revealed, not the others.

Sources: BIP-341: Taproot: SegWit version 1 spending rules, BIP-340: Schnorr Signatures for secp256k1 · checked 4 October 2026

SegWit (Segregated Witness)

SegWit (Segregated Witness) is a Bitcoin upgrade that moves signature data, called the witness, into a separate part of each transaction. It fixed a flaw that let a transaction's ID be altered before confirmation, and it counts signature bytes at a discount, so SegWit transactions can cost less in fees.

What it means for you. Bitcoin fees are quoted in sats per virtual byte, a unit SegWit introduced, so the size your wallet charges for can be smaller than the raw byte count, especially when spending from SegWit addresses. Because a transaction's ID no longer changes when signatures are altered, wallets and payment channels can rely on unconfirmed transaction IDs staying put.

Source: BIP-141: Segregated Witness (Consensus layer) · checked 4 October 2026

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