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A Bitcoin Taproot address (also called a Pay-to-Taproot or P2TR address) is a Bitcoin address type introduced in November 2021 with the Taproot upgrade. Taproot addresses start with bc1p on mainnet and tb1p on testnet.

Why Taproot Matters for Utexo

The Utexo Swap DEX uses Taproot addresses in two ways:
  • HTLC deposit addresses - The BTC deposit address generated for each BTC-to-RGB swap is a P2TR Hash Time-Locked Contract. Sending BTC to a non-P2TR address would not satisfy the HTLC conditions.
  • BTC receive address (RGB-to-BTC swaps) - When you receive BTC after swapping an RGB asset, using a Taproot address improves privacy because Taproot outputs are indistinguishable from ordinary key-path spends on the blockchain.

Properties

PropertyValue
Address prefixbc1p (mainnet), tb1p (testnet)
Script typeP2TR (Pay-to-Taproot)
Signature schemeSchnorr (BIP-340)
Key aggregationYes - multiple keys can be aggregated into one
PrivacySpend conditions are hidden until the output is spent
Fee efficiencyLower fees than P2SH and P2WSH for complex scripts

Example Taproot Address

bc1pavlmkapyn630588yvykxuhhwgzke7d7h0lcgca8a9uczcrct8elq7aqmt8

Address Types Compared

FormatPrefixTypeNotes
Legacy1...P2PKHOldest format; highest fees
SegWit (native)bc1q...P2WPKHWidely supported; lower fees
Taprootbc1p...P2TRRecommended for Utexo swaps; best privacy

Do I Need a Taproot Address?

For BTC-to-RGB swaps: Utexo generates the deposit address automatically - it will always be a P2TR address. You do not need to generate one yourself. For RGB-to-BTC swaps: You provide the BTC receive address. Any standard Bitcoin address format works, but a Taproot address is recommended for privacy. If your Bitcoin wallet does not support Taproot addresses, a native SegWit (bc1q...) address will also work for receiving BTC.

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