> For the complete documentation index, see [llms.txt](https://docs.leather.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.leather.io/learn/segwit-native-segwit.md).

# SegWit vs. Native SegWit Addresses: What's the Difference?

Nested SegWit addresses start with 3, Native SegWit addresses with bc1q. How they differ in format, fees and support.

Both address types came with the SegWit upgrade of 2017, and both store signatures as witness data. They differ in how the SegWit output is written.

|                   | Nested SegWit         | Native SegWit                     |
| ----------------- | --------------------- | --------------------------------- |
| Starts with       | `3`                   | `bc1q`                            |
| Format            | P2SH (Base58)         | bech32                            |
| Fees              | Lower than legacy     | Lowest of the two                 |
| Typing errors     | Case-sensitive Base58 | Lowercase only, stronger checksum |
| Who can pay to it | Every wallet          | Almost every wallet and exchange  |

## Why two formats

Nested SegWit wraps a SegWit output inside a script address. Wallets that did not yet know SegWit could pay to it, which eased the transition in 2017. The wrapper adds a little data to each spend.

Native SegWit uses SegWit directly, in the bech32 format. Spending from it uses the least data of the two, so it costs less.

All Bitcoin address types can send to each other.

See [What is a Bitcoin SegWit Address?](/learn/what-is-a-bitcoin-segwit-address.md) and [What is a Native SegWit Address?](/learn/what-is-a-native-segwit-address.md).

## In Leather

Each Leather account has a Native SegWit address for bitcoin, plus a Taproot address. Leather sends to Nested SegWit addresses but does not create them.