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-compatible transactions. Multisig transactions can be very large in size as they might require multiple keys. Prior to the implementation of Pay-to-Script-Hash, a sender would have to list all of the possible public keys in their locking script.
SegWit compatibility is another case where P2SH comes in handy . SegWit was a soft fork that resulted in a change to block/transaction formats. Because it’s an opt-in upgrade, not all wallet software recognizes the changes. It doesn’t matter if clients wrap the SegWit script hash in P2SH. As with all transactions of this type, they don’t need to know what the unlocking redeemScript will be.
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