Bitcoin (BTC) originated from a peer-to-peer distributed network operation proposed by Satoshi Nakamoto in 2008. It uses encryption technology and distributed ledgers to avoid relying on centralized institutions for endorsement. The emergence of Bitcoin also means the birth of a decentralized payment system. Unlike centralized exchanges, Bitcoin runs on many distributed devices. Within seconds, a given block will be propagated to all other nodes on the network to make sure all nodes reach a consensus on which blocks are valid. In order to protect the users’ privacy, Bitcoin uses 4 kinds of addresses: Legacy Adresses (P2PKH), Pay to Script Hash (P2SH), Native SegWit (P2WPKH) and Taproot (P2TR).