Bitcoin: Why does bitcoin have so many different address formats?

Understanding of the Bitcoin address formats: a closer look

Bitcoin, the first decentralized cryptocurrency in the world, uses a unique set of addresses to facilitate transactions between users. But have you ever wondered why there are so many formats of different addresses? In

Legacy format: the original address

The Legacy format is the most widely recognized address format in use today. It was introduced by Satoshi Nakamoto, the creator of Bitcoin, in 2009

script: a new era in address formats

In 2018, the Bitcoin community introduced the Bech32 script as a format of alternative address. Bech32 is designed to improve the safety and scalability of the bitcoin blockchain reducing the size and complexity of the addresses. Prefix, which allows more efficient conservation and transmission of addresses.

The scripts use specific syntax, in which the first 18 characters are followed by a coded hash of the private key. This creates a unique address that

Separate witness (segwit): second generation address format

In 2017, the Bitcoin community introduced Segwit as a second generation address format. Elaboration of Bitcoin transactions allowing more complex and safe payment flows. Segwit uses a new prefix system that allows you to send more transactions from the account itself in a single block.

Segwit also introduces two new features: “SPEND scripts” (also knows as “script protocols”) and “pay-to-scrip-poooling”. Spending scripts are used to create complex paths, while the pay-to-scrip-scripture allows multiple users to group their fun for a single transaction. These characteristics have significantly increased the usability and scalability of Bitcoin.

** Why different guidelines?

Each address has its own unique characteristics that meet specific cases of use or requirements within the Bitcoin ecosystem. The different formats are designed for:

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Conclusion

Bitcoin address formats may seem complex at first sight, but everyone has a purpose and functionality. The engineering efforts that have started to create a safe and efficient cryptocurrency as a bitcoin. See new features and improvements.

Takeaways Key

• The Legacy format uses a control figure for validation.

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