Ethereum: Why are Bitcoin addresses hashes of public keys?

Ethereum: Why do bitcoins deal with public keys?

Blockchain Bitcoin is built on top of Ethereum, one of the most popular decentralized applications (DAPP) in the Ethereum network. One of the basic aspects of Bitcoins and Ethereum is how they generate and verify transactions and addresses. Although these concepts may seem similar at first glance, there are some key differences in how each system approaches the address generation.

understanding Bitcoin’s addresses

Bitcoins addresses are designed from a public key using repeated hash with SHA-256 and RIPEMD160. This process creates a unique identifier for each transaction. The basic idea is that the public key serves as a fingerprint or a sender signature and combined with multiple hash functions ensures the integrity and uniqueness of the address.

Why are Bitcoin addresses Hashy?

In the case of Ethereum, the Hash addresses are their corresponding public keys. Here is the reason:

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Security : The sender by hashing can ensure that any changes in the key (for example, if a private key is lost or endangered) will significantly change the public key, making it difficult for each other address from the new key.

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Uniqueness : Each Ethereum address has a unique identifier based on its relevant public key. This uniqueness ensures that there are no duplicate addresses, which is a critical aspect of a decentralized system.

Understanding the case of using Ethereum

Ethereum uses hash for another reason: to maintain the integrity and authenticity of transactions in different nodes in the network. This process involves the use of the sender’s public key (like hashd) along with your private key (or mnemonic phrase if it exists). This setting ensures that any transaction sent to the user had to be approved by all nodes in the network before it is considered valid.

Key differences

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Purpose : Bitcoin addresses serve primarily as a form of digital currency and are designed for fast transfers. Ethereum address system is more complex and is used for a wide range of DAPP.

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Security measures

: While both systems use hashing, Ethereum continues to take over by incorporating other security measures, such as message authentication codes (Mac) to ensure the authenticity of the transactions.

Conclusion

In conclusion, bitcoin addresses are the hashmi of their corresponding public keys, which serve several purposes in the blockchain system. This unique approach ensures safety and uniqueness in the Ethereum network. While similar concepts exist on other platforms, integration with an extensive range of decentralized applications such as Ethereum makes its address Hashing strategy particularly effective for these DAPP types.

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