The user accused Binance of losing bitcoins sent to the Taproot format address

in taproot •  3 years ago 

A Stack Exchange user accused the Binance exchange of losing bitcoins, which he tried to withdraw to the address of the new format added with the Taproot update in November.

According to his own words, he used the address "bc1p", which the exchange successfully accepted for withdrawal of funds, but the cryptocurrency never reached his wallet. In the screenshot below, the support agent explains that Binance does not support output to "bc1p" addresses, so it converted it to the supported "bc1q" format. Earlier, Binance reported on its website that it would carry out all the necessary technical work in connection with the launch of Taproot in the interests of users holding bitcoins on the exchange.

In the support service, the client was also recommended to contact the manufacturer of Ledger hardware wallets, which he uses to store cryptocurrencies, and find out if it is possible to convert the address into the necessary format for displaying funds. Bitcoin developer Peter Wulle, however, explained that this is not possible:

"I'm afraid the sent coins are irretrievably burned.

The fact is that P2TR addresses encode the (modified) public key, whereas P2WSH addresses encode the hash of the script. If you want to use the P2TR address, which would be interpreted in the same way as the P2WSH address with the same content, first you need to find a script that hashes the public key to the P2TR address. This is a completely impossible task. If it were possible, the SHA256 algorithm would be cracked with a bang.

This is not your mistake, you should demand bitcoins back. P2TR addresses (like any other) have a checksum. To run Taproot, we even had to change the checksum algorithm. The fact that they accepted this address at all (even if we discard the incorrect interpretation of P2WSH) demonstrates the highest incompetence on the part of the sender."

Presumably, the user lost about $7,000 on this operation.

Earlier, Binance demanded that customers return Dogecoin coins re-sent to them due to a glitch.

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