Popular Science | Taking Unisat and Xverse as examples, briefly analyzing the differences in Bitcoin wallet technology solutions

Original author: Lilyanna Bitlili, crypto KOL

Why does the Xverse wallet have two addresses, while the UniSat wallet only uses one?

In the Xverse wallet, the Bitcoin address usually starts with 3, which is used to store pure BTC without any inscriptions or runes; the second address starts with bc1p, which is used to store Ordinals, BRC-20, Runes and other assets.

Why is it so troublesome? Wouldn’t it be better to put it in one address like UniSat?

In fact, these two types of wallets use different technical solutions.

Xverse and Magic Eden Wallet - Physical Isolation, Each Going Their Own

Completely separate the fund address and asset address. The proxy platform, trading market and other service platforms compatible with the Xverse wallet also follow this rule. When payment is required, take money from the fund wallet, and deposit the inscribed/purchased assets into the asset wallet.

This "brainless" group transaction method has a relatively high fault tolerance rate. Even if the wallet index service is abnormal, there will be no asset burning during payment.

Some friends may not be used to it at the beginning, and often transfer to the wrong address. For example, transfer BTC to the bc1p address, and find that the wallet cannot read the balance and cannot pay (because it defaults to reading only the balance in the fund address, and the bc1p asset address is all inscriptions and runes by default, which cannot be used for payment).

After understanding the principle, follow its rules, only send money to the address starting with 3, and transfer assets to the bc1p address, and you can use it normally.

UniSat and OKX wallets - mixed storage, intelligent screening

Wallets such as UniSat and OKX store funds and assets together in one address, and there is no need to deliberately distinguish them when using them.

When paying/buying assets, the wallet will filter the UTXO from the address, pick out clean UTXOs without assets from it for payment, and filter out UTXOs with assets (such UTXOs with assets will be classified as Unavailable in UniSat and marked as occupied UTXOs in OKX).

When selling or transferring assets, operate from the UTXO where the asset is located in the address; runes/NFTs purchased can also be received at the same address.

This processing method is more dependent on the index service of the wallet. If the UTXO cannot be selected correctly, it may lead to asset burning (for example, the UTXO carrying NFT is paid as ordinary BTC, or even burned to miners).

However, the wallet services of UniSat and OKX are very stable, and the probability of this happening is very small, so there is no need to worry too much.

The only thing to worry about is that some niche platforms bypass the UTXO selection of the UniSat wallet and use the platform's service to select UTXO to group transactions. In the case of immature technology and imperfect indexing, "burning inscriptions" may occur. Before signing, you will be shocked to find that your inscription is in the input. At this time, you must decisively refuse to sign.

Fortunately, UniSat and OKX will now give strong reminders for such abnormal transactions, and the inscriptions will not be transferred without perception.

From observation, most of the friends in the Chinese community are more accustomed to the mixed storage method. They think it is simple, there is no need to distinguish addresses, and it will not be unusable due to wrong transfer.

The above two types of wallets have different technical solutions only in terms of starting points and implementation ideas. As long as you learn the correct way to use them, they are safe and easy to use. There is no absolute good or bad.

It is recommended that you use both types of wallets. If you often use UniSat/OKX wallets, you can try to create Xverse and Magic Eden wallets, and vice versa.

Different platforms may not support exactly the same types of wallets. Some platforms support Xverse wallets better, while others support UniSat better. Prepare all kinds of wallets and put some BTC in each for easy operation at any time.

(What’s more, there are still many clever people who are deliberately dividing wallets and addresses to fight for an uncertain future blessing, you know)

Original link