Understanding Bitcoin address formats: closer view
Bitcoin, the first decentralized cryptocurrency in the world, uses a unique set of addresses to facilitate transactions among users. But you have ever wondered why there are so many formats of different addresses? In this article, we deepen history and functionality behind each type of address format, as well as their consequences for the processing of bitcoin transactions.
Inheritance format: Original address
Legacy format is the most recognized address format that is used today. It was introduced by Satoshi Nakamoto, the creator of the Bitcoins in 2009. This format consists of a series of six characters followed by control. For example, the address “1A1B2C2D3E3F3GG3K3K3K3K3L3L3M3N3N3P3P3R3R3R3R3S3T3U3U3V3W3W3X3Z3” uses the hexadecimal controller control image to confirm its integrity.
Script Bech32: New era in address formats
In 2018, the Bitcoin community presented the Bech32 script as an alternative address format. Bech32 is designed to improve the safety and scalability of the bitcoin blockchain, which reduces the size and complexity of the addresses. Part “Bech32” refers to the fact that this new format uses a binary coded prefix that allows more effective protection and transmission of addresses.
Bech32 scripts use specific syntax, which follows the first 18 characters a coded hash private key. This creates a unique address that can be used to receive payments from bitcoin nodes (nodes that verify and verify transactions) without having to create more public keys for each address.
Separate Witness (Segwit): Second generation address format
In 2017, the Bitcoin community was presented by Segwit as a second generation address format. Segwit is designed to improve the efficiency of the processing of bitcoin transactions, allowing more complex and safer payment flows. Segwit uses a new prefix system that allows you to send more transactions from the account itself in one block.
Segwit also represents two new features: “Scripts Scripts” (also known as “scripts”) and “Pay-to-Scripting-Baoling”. Expenditure scripts are used to create complex payments, while scripture pay-to-scripture allows multiple users to group their funds per transaction. These characteristics have significantly increased the usability and scalability of bitcoins.
Why different instructions?
Each address format has its own unique features that meet specific use or requirements within the bitcoin ecosystem. Different formats are designed for:
- Reduce storage costs: In particular, Bech32 scripts use a binary coded prefix to reduce address size.
- Increases transactions during transactions: the new SEGWIT prefix system, and expenditure enables faster payment processing.
- Improve safety: Legacy format uses a verification control, while the Bech32 script is a hash codified for greater safety.
Conclusion
Bitcoin address formats may seem complicated at first sight, but each has their own purpose and functionality. By understanding history and design based on these formats of different addresses, we can better appreciate engineering efforts that have begun to make a safe and effective cryptocurrency as bitcoin. While blockchain is constantly evolving, it will be exciting to find out how new features and improvements are introduced in response to the needs of users and market needs.
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- Legacy format uses to verify the control number.
- The Bech32 script is designed to improve safety and scalability using binary coded prefixes.
- Segwit presents two new features: script expenses (scripts protocols) and pavilion.
- Each address format has its own unique features that meet specific cases or requirements for use.