Cryptocurrency address formats

Cryptocurrency address formats

In earlier articles, we have, among other things, given you a brief overview of cryptocurrency wallets that you can apply to your own needs. However, know that every wallet also requires you to have addresses for the coins you wish to store on it. In this post, we will tell you what they are and how to distinguish between them.

What are cryptocurrency addresses?

Every traditional bank account has its own unique account number. These digits, are assigned to a specific owner. Although they may be public in nature, only a person who knows the password has access to the account. It is similar in the world of crypto assets. A wallet address is nothing more than a string of characters assigned to a specific account. We call it a cryptocurrency address. An address to which only the owner has the keys.

In the article titled “Cryptocurrency Wallets”, we discussed desktop applications. One of them was Exodus. On its example, we will show you where you can find particular wallet addresses and how to use them.

Let’s assume that you would like to receive Bitcoin for your newly created wallet. After opening the Exodus app and selecting the “Wallet” tab, you can choose any of the available cryptocurrencies from the menu that appears below. It is very important that you do not make a mistake at this point and choose the right token. BTC can only be received and sent using a BTC address. It is the same with all other cryptocurrencies. Each blockchain has its own set of addresses and to avoid losses, it is important to keep this in mind.

However, let’s go back to our Bitcoin. After selecting it from the list, we will see two buttons. One is for receiving and the other for sending coins. We choose the “receive” option. In front of our eyes we will see a string of characters. This is an automatically created cryptocurrency wallet address for the currency. In addition you can see that next to it there is a QR code. In it the address is also written. Through it and without the need to rewrite the sequence of letters and numbers, we are able to easily receive coins. To send Bitcoin we have to go back to the previous window and click the “send” button. A field will appear in front of us which should be filled in with the exact address. This way you can transfer your tokens directly to the exchange.

Address types for Bitcoin

Since the existence of the Bitcoin network there have been addresses for cryptocurrency transfers. Currently, three formats of these are known. These are: addresses starting with 1, which is the so-called Legacy, addresses starting with 3 (Nasted SegWit) and bc1 addresses (Native SegWit). Currently, the latter are the most popular and are also used in the previously mentioned Exodus. The use of “bc1” addresses is important for Bitcoin’s scalability, by increasing the bandwidth of its network. If you want to learn more about this issue, we invite you to the article titled “What is SegWit”, where we explain what caused the appearance of the latest address format.

Security of addresses

If you want to have cryptographic assets in your wallet, it is nice to be sure that they are fully secured. This is guaranteed by the SHA-256 algorithm which is a 256-bit secure hashing algorithm. It was designed by National Security Agency back in 2001. It is a cryptographic mathematical operation performed on digital data. This algorithm found its use in the Bitcoin network, with the support of Proof of Work. It is thanks to it that addresses for BTC wallets are created, and it is thanks to it that we are assured of complete security and complete privacy.

DisclaimerBlockbulletin does not take accountability of investments based on the information of the website. We highly advice readers to make extensive research prior to any invest

Share this post

Share on facebook
Share on twitter
Share on linkedin
Share on pinterest
Share on print
Share on email

More Guides

Terra (LUNA)

What is Terra (LUNA)?

This time we take a look at another project that dived deep into the hearts of investors. What exactly is…

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are…
All articles loaded
No more articles to load

Latest News

All articles loaded
No more articles to load

Analyses

All articles loaded
No more articles to load

Knowledge Base

What is Terra (LUNA)?

This time we take a look at another project that dived deep into the hearts of investors. What exactly is Terra (LUNA)? Blockchain Terra (LUNA)…

What is Avalanche (AVAX)?

Avalanche (AVAX) is a blockchain, which conquers the hearts of programmers and at the same time is a great bargain for investors. What distinguishes the…

What are stablecoins and how can you use them?

In recent years, cryptocurrencies are experiencing a real “boom”! And not just for cryptocurrencies – the rise in popularity applies to blockchain technology in general.…

What is Sandbox (SAND)?

In this material, we take a look at one of the fastest growing spaces in the metaverse family. We are talking about Sandbox and SAND…

What is Polygon (MATIC)?

Another coin worth looking at is Polygon (MATIC). It is especially liked by many investors. So what makes its popularity constantly growing? Support for Ethereum…

What is Shiba Inu (SHIB)

Shiba Inu (SHIB) is one of the most sought-after coins on the market. This is evidenced by its dynamic rallies and global interest. But does…
All articles loaded
No more articles to load