BIP84
BIP84 is the Bitcoin standard that defines how a wallet derives native SegWit addresses (starting with bc1q) from a seed, using the path m/84'/0'/0'.
What Is BIP84?
BIP84 is the Bitcoin standard that tells a wallet how to derive native SegWit addresses from a seed. It defines the derivation path m/84'/0'/0' for the first account and the address type P2WPKH, whose addresses start with bc1q.
It follows the same account structure as BIP44, with separate branches for receiving and change addresses, but uses the purpose number 84. This keeps native SegWit coins apart from legacy addresses (BIP44, starting with 1) and wrapped SegWit addresses (BIP49, starting with 3). BIP84 also defines the zpub and zprv prefixes for the extended keys of this account type.
For a hardware wallet user, BIP84 is mostly invisible: it is what the wallet uses when “Native SegWit” is selected as the account type. Transactions from these addresses take less block space than legacy ones, so they cost less at the same fee rate.
It matters during recovery. One seed produces different addresses under each standard, so a wallet restored with the wrong account type shows a zero balance even though the coins are untouched. Choosing the native SegWit account, or entering the BIP84 path manually, brings them back.
Bitcoin (BTC) is the first decentralized cryptocurrency, launched in 2009. It uses blockchain technology for secure, peer-to-peer digital transactions without intermediaries.
Read full definition: BitcoinSegWit (Segregated Witness) is a Bitcoin upgrade that moves transaction signatures to a separate data structure, increasing block capacity and enabling efficient scaling solutions like the Lightning Network.
Read full definition: SegWitA derivation path is a string of indices (e.g., m/44'/0'/0'/0) that specifies how to derive specific keys and addresses from a hierarchical deterministic (HD) wallet's master seed.
Read full definition: Derivation PathBIP44 is a standard for deriving cryptocurrency wallet keys using a hierarchical structure, allowing for multiple accounts and addresses within a single wallet.
Read full definition: BIP44A change address is a new address where leftover cryptocurrency is sent after a transaction, ensuring any unspent funds are returned to the sender in blockchain transactions.
Read full definition: Change AddressA hardware wallet is a dedicated device that keeps private keys offline and signs transactions internally, so the keys never reach an internet-connected computer or phone.
Recovery is the process of restoring access to a cryptocurrency wallet using its seed phrase or mnemonic backup if the original wallet is lost or inaccessible.
Read full definition: RecoveryReal-World Examples
Example 1: A user connects a BitBox02 to Sparrow and selects native SegWit as the script type. Sparrow shows the derivation m/84'/0'/0' and generates addresses that start with bc1q.
Example 2: After restoring a seed in a different app, a user sees a zero balance because the app opened a legacy account. Adding a native SegWit account makes the coins appear.
Sparrow Wallet is a desktop Bitcoin wallet that focuses on security, privacy, and advanced features for managing Bitcoin transactions and keys.
Read full definition: Sparrow WalletSegWit (Segregated Witness) is a Bitcoin upgrade that moves transaction signatures to a separate data structure, increasing block capacity and enabling efficient scaling solutions like the Lightning Network.
Read full definition: SegWitFrequently Asked Questions
Why does my wallet show a zero balance after restoring a seed that used BIP84?
Most likely the app opened a different account type. One seed produces different addresses under each standard, so a wallet restored as legacy (BIP44) or wrapped SegWit (BIP49) does not look at the bc1q addresses. The coins are untouched. Adding a native SegWit account, or entering the path m/84'/0'/0' manually, makes them appear again.
How do BIP84 addresses differ from BIP44 and BIP49 addresses?
All three use the same account structure with receiving and change branches, but a different purpose number and address type. BIP44 gives legacy addresses starting with 1, BIP49 wrapped SegWit addresses starting with 3, and BIP84 native SegWit (P2WPKH) addresses starting with bc1q. Native SegWit transactions take less block space, so they cost less at the same fee rate.
What is a zpub, and how does it relate to BIP84?
BIP84 defines the zpub and zprv prefixes for the extended keys of a native SegWit account. The prefix marks the key as belonging to this account type, so software that reads a zpub knows to derive bc1q addresses under m/84'/0'/0' rather than legacy or wrapped SegWit addresses.
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