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 different address formats? In this article, we dive into 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. In 2009 he was introduced by Satoshi Nakamoto, the creator of Bitcoin. This format consists of a series of six characters followed by a control digit. For example, the address “1A1B2C2D3E3F3F3I3J3K3L3L3M3N3P3P3R3S3S3T3U3V3W3W3X3Y3z3” uses hexadecimal control control to verify 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 by reducing the size and complexity of the addresses. Part “Bech32” refers to the fact that this new format uses a binary prefix coded that allows more efficient storage and transmission of addresses.
Bech32 scripts use specific syntax, where the first 18 characters are followed by a coded hash private key. This creates a unique address that can be used to receive bitcoin nodes (nodes that verify and verify transactions) without having to create more public keys for each address.
Segregated 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 by allowing more complex and safer payment flows. Segwit uses a new prefix system that allows you to send multiple transactions from the same account in one block.
Segwit also represents two new features: “Scripts Scripts” (also known as “scripts”) and “payment-script-pooling”. Expenditure scripts are used to create complex payments, while paying subscripting allows multiple users to connect their funds together for one transaction. These properties have significantly increased the usability and scalability of bitcoins.
Why different address formats?
Each address format has its own unique features that satisfy specific use or requirements within the bitcoin ecosystem. Different formats are designed to:
- Reduce storage costs: In particular, Bech32 scripts use binary -coded prefixes to reduce the size of the addresses.
- Increase transaction permeability: The new system prefixes SEGWIT and scripts expenditures allow faster payment processing.
- Security enhancement: Legacy format uses a check -up for verification, while the Bech32 script is a coded hash for increased safety.
Conclusion
Bitcoin address formats may seem complicated at first glance, but each has its own purpose and functionality. By understanding history and design behind these different address formats, we can better appreciate the engineering efforts that have gone to the creation of a safe and effective cryptocurrency such as bitcoin. When blockchain is constantly evolving, it will be exciting to find out how new features and improvements are introduced in response to users’ needs and market requirements.
Key Roads
- Legacy format uses a check -up for verification.
- The Bech32 script is designed to improve safety and scalability using binary coded prefixes.
- Segwit presents two new features: Script expenditure (scripts logs) and payment-script-pooling.
- Each address format has its own unique features that satisfy specific cases or requirements for use.
