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Taproot Wallets

Nostr is Taproot native. Both Nostr and Bitcoin Taproot use the same secp256k1 cryptography, meaning your Nostr keypair can directly control Bitcoin via Pay-to-Taproot (P2TR) addresses.

Why Nostr is Taproot Native​

Shared Cryptography​

Key Relationship​

ComponentNostrBitcoin Taproot
Curvesecp256k1secp256k1
Private Keynsec (32 bytes)Same 32 bytes
Public Keynpub (x-only)x-only pubkey
Addressnpub1...bc1p...

Pay-to-Taproot (P2TR)​

What is P2TR?​

P2TR (BIP-341) is the native SegWit v1 output type:

  • Single-sig: Spend with just a signature (key path)
  • Multi-sig: Complex scripts hidden until spent (script path)
  • Privacy: All spends look identical on-chain
  • Efficiency: Smaller transactions, lower fees

P2TR Address Structure​

bc1p + 32-byte x-only pubkey (Bech32m encoded) = Same pubkey as your Nostr npub

Deriving P2TR from Nostr Key​

import { getPublicKey } from 'nostr-tools';
import * as bitcoin from 'bitcoinjs-lib';

// Your Nostr private key (nsec decoded)
const privateKey = hexToBytes('your-private-key-hex');

// Get x-only public key (same for Nostr and Taproot)
const pubkey = getPublicKey(privateKey);

// Create P2TR address
const { address } = bitcoin.payments.p2tr({
  internalPubkey: Buffer.from(pubkey, 'hex'),
  network: bitcoin.networks.bitcoin,
});

console.log(address); // bc1p...

Using Nostr Keys for Bitcoin​

Direct Key Usage​

Your Nostr identity can directly receive Bitcoin:

  1. Derive P2TR address from your npub
  2. Share address for receiving payments
  3. Sign transactions with your nsec
  4. Spend Bitcoin using the same key

Security Considerations​

Key Reuse

While technically possible, using the same key for both Nostr signing and Bitcoin spending has tradeoffs:

  • Pro: Single key to manage, unified identity
  • Con: Nostr signatures could theoretically leak information
  • Recommendation: Use derived keys for Bitcoin (BIP-32 child keys)
import { HDKey } from '@scure/bip32';

// Master key from Nostr seed
const masterKey = HDKey.fromMasterSeed(seed);

// Derive Bitcoin key (BIP-86 for Taproot)
const bitcoinKey = masterKey.derive("m/86'/0'/0'/0/0");

// Derive Nostr key (custom path)
const nostrKey = masterKey.derive("m/44'/1237'/0'/0/0");

Taproot-Compatible Wallets​

Hardware Wallets​

WalletP2TR SupportNostr Support
LedgerYesIn development
TrezorYesCommunity apps
ColdcardYesDIY possible
BitBox02YesNo

Software Wallets​

WalletP2TRNostr Integration
SparrowFullManual key import
BlueWalletYesNo
ElectrumYesNo
SpecterYesNo

On-Chain Payments on Nostr​

Sharing Your Address​

Add P2TR address to your Nostr profile:

{
  "kind": 0,
  "content": {
    "name": "Alice",
    "about": "Bitcoin and Nostr enthusiast",
    "bitcoin": "bc1p..."
  }
}

Payment Requests​

Create on-chain payment requests via DM:

{
  "kind": 4,
  "content": "<encrypted: Please send 0.001 BTC to bc1p...>",
  "tags": [["p", "recipient-pubkey"]]
}

BIP-21 URIs​

Share Bitcoin URIs in Nostr notes:

bitcoin:bc1p...?amount=0.001&label=Payment%20for%20services

Taproot Scripts on Nostr​

Multi-Signature with Nostr Keys​

Create 2-of-3 multisig using Nostr pubkeys:

import { Taptree } from 'bitcoinjs-lib';

// Three Nostr pubkeys (x-only format)
const pubkeys = [
  'alice-npub-hex',
  'bob-npub-hex',
  'carol-npub-hex'
];

// Create Taproot multisig
const multisig = bitcoin.payments.p2tr({
  internalPubkey: combinedPubkey,
  scriptTree: {
    output: bitcoin.script.compile([
      pubkeys[0], bitcoin.opcodes.OP_CHECKSIG,
      pubkeys[1], bitcoin.opcodes.OP_CHECKSIGADD,
      pubkeys[2], bitcoin.opcodes.OP_CHECKSIGADD,
      bitcoin.opcodes.OP_2, bitcoin.opcodes.OP_EQUAL
    ])
  }
});

Time-Locked Payments​

Escrow with Nostr identities:

// Payment unlocks after timestamp OR with both signatures
const escrowScript = {
  leaves: [
    { output: timelockScript },      // After 30 days
    { output: multisigScript }       // Alice + Bob agree
  ]
};

Future: Native Nostr-Bitcoin Integration​

Proposed NIPs​

  • Payment Requests: Standardized on-chain payment requests
  • PSBT Sharing: Partially Signed Bitcoin Transactions via Nostr
  • Multisig Coordination: Nostr-based signing rounds
  • Address Derivation: Standard paths for Nostr→Bitcoin keys

Potential Use Cases​

  1. Escrow Services: Nostr-mediated Bitcoin escrow
  2. Inheritance: Time-locked transfers to Nostr identities
  3. DAOs: Multi-sig treasuries with Nostr governance
  4. Atomic Swaps: Cross-chain swaps coordinated via Nostr

Best Practices​

For Users​

  1. Backup both keys - Nostr and Bitcoin keys if separate
  2. Use hardware wallets - For significant Bitcoin amounts
  3. Verify addresses - Always double-check P2TR addresses
  4. Consider derivation - Use BIP-86 paths for Taproot

For Developers​

  1. Support P2TR - Native Taproot in all Bitcoin features
  2. Key derivation - Implement standard derivation paths
  3. PSBT support - Enable multi-device signing
  4. Address validation - Validate Bech32m (bc1p) addresses

Resources​

Unified Identity

Your Nostr key IS a Bitcoin key. This cryptographic alignment means your decentralized identity can natively hold and transfer value - no bridges, no wrapping, just pure Bitcoin.