Summary:
A Bitcoin address is a unique alphanumeric string used to receive bitcoin. Similar to an email address for money, it allows funds to be sent directly to your digital wallet.
Details:
Bitcoin addresses are derived from public keys, which in turn are generated from private keys. These addresses come in multiple formats, such as Legacy (1…), P2SH (3…), and Bech32 (bc1…). Bech32 is the most modern format, offering lower fees and improved error detection.
Each time you want to receive bitcoin, your wallet can generate a new address—enhancing your privacy. When someone sends bitcoin to your address, the transaction is recorded on the blockchain and can be publicly verified. However, addresses are case-sensitive and irreversible—sending funds to an incorrect address means permanent loss.
Key Features:
- Three major formats: Legacy (1…), P2SH (3…), and Bech32 (bc1…).
- Designed for one-time use to enhance privacy and prevent address reuse.
- Tied to public-private key pairs that ensure cryptographic ownership.
- Often shared as QR codes or simple text for ease of use.
- All transactions sent to an address are permanently recorded on the blockchain.