TL;DR
A bitcoin multisig can live at four kinds of address: legacy P2SH and nested P2SH-P2WSH (both start with 3), native SegWit P2WSH (bc1q, 62 characters) and taproot P2TR (bc1p). For a new 2-of-3 with Sparrow, pick Native SegWit (P2WSH): it’s the cheapest type all three devices support today, and its path is m/48’/0’/0’/2′.
When you create a multisig in Sparrow, the first setting is the script type. Electrum asks the same question with different words. The choice decides what your addresses look like, how much each spend costs and which wallets can recover it later. You can’t change it afterwards without building a new wallet and moving the coins, so it’s worth a minute.
The four types at a glance
| Type | Address starts with | Descriptor | Path (account 0) | Size per 2-of-3 input |
|---|---|---|---|---|
| Legacy P2SH | 3 (34 characters) | sh(sortedmulti(…)) | m/45′ in Sparrow and Electrum | about 297 vB |
| Nested SegWit P2SH-P2WSH | 3 (34 characters) | sh(wsh(sortedmulti(…))) | m/48’/0’/0’/1′ | about 140 vB |
| Native SegWit P2WSH | bc1q (62 characters) | wsh(sortedmulti(…)) | m/48’/0’/0’/2′ | about 104 vB |
| Taproot P2TR | bc1p (62 characters) | tr(…) | no BIP48 type | about 58 vB (key path) |
Sizes are my own calculation from the transaction format, for one input spent with two signatures, rounded. A vB (virtual byte) is the unit fees are charged in. At 10 sats per vB, the difference between legacy P2SH and P2WSH is close to 2,000 sats per coin you spend. More on fees in how much more does a multisig transaction cost.
Legacy P2SH
The original multisig address type, from 2012. The whole script and both signatures sit in the non-SegWit part of the transaction, which is why it’s the most expensive by far. Every wallet and exchange can send to it. There’s no reason to pick it for a new wallet. The BitBox02 doesn’t support it for multisig at all: its firmware only knows P2WSH and the wrapped version.
Nested SegWit P2SH-P2WSH
A SegWit multisig wrapped in a P2SH address, so it still starts with 3. It was the compromise from the years when many services couldn’t send to bc1 addresses. You get most of the SegWit discount, but each input carries an extra small script, so it’s about a third bigger than native P2WSH. Its path in BIP48 ends in 1′. Today it only makes sense if you’re recovering an older wallet that already uses it.
Native SegWit P2WSH (what the guide uses)
The modern multisig type. Addresses start with bc1q and are 62 characters long, longer than a single-sig bc1q address (42), because they commit to a 32-byte script hash instead of a 20-byte key hash. BIP48 names it the recommended default, with the path m/48’/0’/0’/2′. That last 2′ is the script type; derivation path explained walks through the rest.
Why the guide picks it:
- All three devices in the guide sign it: BitBox02, Ledger (Bitcoin app 2.1+) and Trezor.
- The BitBox02 and the Ledger can register it and check addresses themselves (wallet registration explained).
- It’s the type most multisig wallets can open from a wsh(sortedmulti(…)) descriptor, so a recovery doesn’t depend on Sparrow.
- It’s the cheapest multisig type that works across all three brands today.
Taproot P2TR
Taproot addresses start with bc1p. A taproot multisig can be spent through one combined key (MuSig2), which looks like any single-sig payment and is the smallest spend, or through a script that reveals it’s a multisig. BIP48 doesn’t define a taproot script type, and as of October 2026 Sparrow only does single-sig taproot and the Trezor firmware doesn’t list taproot multisig. The full picture is in Taproot and MuSig2 multisig.
So a bc1p address in Sparrow is always single-sig. If you see one in what you think is your vault, you’re in the wrong wallet.
Device and app support
| P2SH | P2SH-P2WSH | P2WSH | P2TR multisig | |
|---|---|---|---|---|
| Sparrow | Yes | Yes | Yes (default) | No |
| Electrum | Yes | Yes | Yes | No |
| Ledger Bitcoin app | Yes | Yes | Yes | Yes |
| Trezor | Yes | Yes | Yes | Not in the changelog |
| BitBox02 | No | Yes | Yes | Taproot policies |
Sources: Sparrow’s and Electrum’s source code, Ledger’s Bitcoin app documentation, Trezor’s and BitBox’s firmware message definitions, all checked October 2026. Electrum doesn’t offer taproot multisig in its wallet wizard.
Electrum’s names for the same thing
In Electrum‘s multisig wizard the three choices read:
| Electrum label | Means | Key prefix in Electrum |
|---|---|---|
| legacy multisig (p2sh) | Legacy P2SH, path m/45’/0 | xpub |
| p2sh-segwit multisig (p2wsh-p2sh) | Nested SegWit | Ypub |
| native segwit multisig (p2wsh) | Native SegWit, like this guide | Zpub |
A Zpub is the same key as Sparrow’s xpub with a different label for the address type (what is an xpub). Pick the same type in every app, or you’ll get different addresses from the same keys.
Common mistakes
- Picking a type because the addresses look familiar. A 3-address multisig costs more to spend, for no gain.
- Recovering with the right keys but the wrong script type. The wallet opens, looks empty and gives no error. Check the first address against your records, as in step 10.
- Mixing paths: P2WSH keys exported on the 1′ path (or the reverse). Each device’s path should read m/48’/0’/0’/2′.
- Expecting to switch types later. A different type is a new wallet: new descriptor, new test, then move the coins.