Mechanism and Usage of Bitcoin Address
The Bitcoin address, also known as the Bitcoin (BTC) account number, plays an important role in Bitcoin (BTC) transactions. The structure of Bitcoin addresses is very complex and is well protected by blockchain technology. However, in order to safely trade Bitcoin (BTC), it is also necessary to understand the mechanism of Bitcoin address correctly. Therefore, this time, I would like to introduce the points that you should know when doing Bitcoin (BTC) transactions, such as the Bitcoin address mechanism and the precautions when sending Bitcoin (BTC).
What is a bitcoin address?
Bitcoin addresses are like “account numbers” that are handed over when doing Bitcoin (BTC) transactions. When sending by bank, specify the other party’s deposit account number, and when sending bitcoin (BTC), specify the other party’s bitcoin address in the same way.
You can also follow the details from the Bitcoin address when investigating the transaction history on the blockchain.
Bitcoin address mechanism
A general Bitcoin address is a combination of 27 to 34 alphanumeric characters and is made of a character string that is difficult to read unlike a general ID. This is because it is generated by applying one-way cryptographic hashing to the “public key” generated from the “private key” that only you know.
What is a private key?
A private key is a key that only you know. The relationship between a Bitcoin address and a private key is similar to the relationship between a “deposit account and PIN” and a “check and signature”.
In Bitcoin (BTC), each transaction data is called a “transaction”, but when paying Bitcoin (BTC), a signature with a private key is required. Therefore, if the private key is known to a third party, the
Bitcoin (BTC) managed by your Bitcoin address may be withdrawn illegally. As with your PIN code on your savings account, you should keep your private key in a safe place.
What is a public key?
A public key in the https://cryptoengine.app/ is a key in a key pair that may be disclosed to others and is required when receiving Bitcoin (BTC).
Bitcoin address types
Common bitcoin addresses start with “1” or “3”, but there are several other types. Before you trade Bitcoin (BTC), let’s understand the difference.
Addresses starting with “1”
When extracting Bitcoin (BTC) from a Bitcoin address, an address that requires a signature with a private key is required.
Addresses starting with “3”
This is an address that requires multiple signatures with a private key when extracting Bitcoin (BTC) from a Bitcoin address. Even if one private key is leaked, you cannot access Bitcoin (BTC) without another private key, which increases security.
Addresses starting with “bc1” Bitcoin addresses created with a wallet that supports “Segwit” technology that compresses transaction (transaction history) to reduce the amount of data. When sending Bitcoin (BTC) addressed to “bc1”, the sender must send it from the address corresponding to “Segwit”.
Blockchain technology that protects Bitcoin addresses
Detailed transaction (transaction history) such as “Which Bitcoin (BTC) was sent to which bitcoin address was sent” is recorded on the blockchain and can be seen by people all over the world. Therefore, anyone can check the transaction history by following the bitcoin address on the blockchain.
On the other hand, even if you can check the transaction history on the blockchain, you cannot determine who the individual bitcoin address belongs to. Therefore it is said that Bitcoin (BTC) transactions are anonymous.
This highly encrypted blockchain technology keeps Bitcoin addresses highly confidential.
How to get Bitcoin address and where to get it
Bitcoin addresses can be obtained from wallets provided by crypto asset exchanges or sales outlets, wallet services that can be used by downloading apps on smartphones, and hardware wallets managed by dedicated terminals such as USB.
If you are going to start trading Bitcoin (BTC), the recommended method is to open an account on a crypto asset (virtual currency) exchange or sales office to get a Bitcoin address. You can easily get it from the guide screen of your Smartphone or PC through the wallet provided.
As the number of Bitcoin (BTC) transactions increases, the number of storage locations such as storage wallets and shopping wallets will increase.