Bitcoin Address

1. What Is a Bitcoin Address

A Bitcoin address is an identifier used to receive Bitcoin. It is a derived hash of a public key, usually presented as a string of letters and numbers, and can exist in several formats depending on the script type.

2. How It Works

Bitcoin addresses are generated from the private key → public key → address derivation chain. The wallet derives a public key from the private key, hashes it, and encodes the result with a checksum in a specific format (Base58Check for legacy, Bech32 for SegWit). Funds sent to an address are locked to the corresponding script; only the holder of the matching private key can spend them.

3. Why It Matters

Addresses are the user-facing identity of Bitcoin ownership. Format differences (legacy vs SegWit vs Taproot) affect fees and compatibility, and address security determines who can control funds. Understanding address basics — checksums, formats, reuse risks — is foundational to using Bitcoin safely.

4. Key Facts

• Formats: P2PKH (1...), P2SH (3...), Bech32 (bc1...), Taproot (bc1p...)
• Address reuse harms privacy and can be targeted by dusting
• Each address has a checksum that catches typos
• A wallet can generate an unlimited number of addresses from one seed

5. Related Concepts

• bitcoin
• utxo
• segwit
• crypto-wallet