Spend and Change Addresses
Last updated
Last updated
You will see references to different types of Bitcoin addresses when using Oyl. This can be confusing to many users and who needs more complexity in their lives? Our goal is to give everyone access to bitcoin native assets without having to know the details of different bitcoin addresses.
The Oyl wallet Smart Spend feature efficiently manages transaction fees by utilizing Bitcoin Taproot, Native SegWit (Bech32), Nested SegWit, and Legacy payment addresses. By default, the primary address for handling transaction fees is set to Native SegWit, with Taproot serving as the primary option for holding Ordinals and other Bitcoin assets.
Here’s how it works:
Using Smart Spend, when a transaction requires payment of fees, Oyl wallet first attempts to use spendable Native SegWit UTXOs. If these UTXOs contain sufficient Bitcoin to cover the fees, they are directly used as inputs for the transaction. Should the Native SegWit UTXOs prove insufficient, the wallet then proceeds to check for available Nested SegWit UTXOs. If there are no Nested SegWit UTXOs or the balance of Nested SegWit is insufficient, it will then proceed to check Taproot UTXOs.
During this process, UTXOs associated with meta-protocol artifacts are first filtered out so they are not accidentally spent. This multi-address strategy allows Oyl wallet to obscure the complexities of transaction fees while offering a flexible fee payment process.
We suggest using Taproot addresses for Ordinal transactions (including inscriptions and BRC20s) and Native SegWit addresses for regular spot Bitcoin transactions and fees.
Users that prefer to use a single spend address instead of Smart Spend can do so in the Oyl wallet settings:
Update the Spendable UTXO source
Open the Extension and navigate to the main menu.
Select "Settings"
You will see the "Spendable UTXO source" dropdown showing the bitcoin balances for your wallet addresses
Select the address you wish to use as your spend address. This address will be used as the source of UTXOs for all fees and when sending Bitcoin.
Most transactions require a "change output" that receives any bitcoin not used for fees or sending. To promote best practices, Oyl wallet, by default, sends change to a user's Native SegWit address. For example, if a user has mostly Taproot bitcoin in their wallet and pays for a transaction with Taproot, they will get change in SegWit. Using SegWit as the primary spending address lowers the risk of accidentally losing a Taproot asset.
Users that prefer to use a different change output address can do so in the Oyl wallet settings:
Update the Change address
Open the Extension and navigate to the main menu.
Select "Settings"
You will see the "Change address" dropdown showing the bitcoin balances for your wallet addresses
Select the address you wish to use as your change address. This address will receive the bitcoin change from wallet transactions
