BIP 86 — Key Derivation for Single Key P2TR Outputs

BIP 86 (Key Derivation for Single Key P2TR Outputs) standardizes derivation (purpose 86') for single-key Taproot outputs, producing bech32m addresses beginning bc1p, and specifies tweaking the internal key so that no hidden script path exists. Repository status: Deployed.

Debate relevance: Appears when Taproot adoption is debated ('can wallets even receive to bc1p?') and in recovery discussions for Taproot-era wallets. Common misstatements: Assuming every bc1p output hides a script tree — BIP 86 single-key outputs deliberately commit to no script path. Confusing bc1p (bech32m, Taproot) with bc1q (bech32, SegWit v0).