How many types of BTC addresses are there now?
There are now four BTC address types, each of which is slightly different in the format and use of the address. The following are several common Bitcoin address types: P2PKH (Pay-to-Public-Key-Hash): This is the most common address type and starts with "1". This address type is the earliest and most widely accepted. For example: 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2
P2SH (Pay-to-Script-Hash): Starts with "3" and is used for multi-signature and other complex transaction scripts. This address type's script is verified in the transaction. For example: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy
Bech32: Starting with "bc1q", it is the latest address format of Bitcoin, also known as the native segregated witness address (Segregated Witness). Bech32 addresses have higher error detection capabilities and support more advanced features such as segregated witness. For example: bc1qar0srrr7xfkvy5l643lydnw9re59gtzzwf5mdq
Taproot address: This type of address starts with "bc1p". In order to improve the efficiency of block space and improve costs, SegWit introduced some changes in the way addresses are constructed. Therefore, based on the SegWit address, the Taproot address was developed, which translates to the taproot address, which further reduces storage space, improves transaction efficiency, and provides better privacy. Q·
Why is it called P2PKH (Pay-to-Public-Key-Hash)?
The term P2PKH (Pay-to-Public-Key-Hash) was defined by Satoshi Nakamoto, one of the founders of Bitcoin. The term means pay to public key hash. In a P2PKH transaction, the payer sends funds to the public key hash address of the receiver instead of directly to the receiver's public key. This method improves privacy and security because the public key hash address does not directly expose the receiver's public key. In a P2PKH transaction, the receiver's address is a hash value generated using his public key instead of using the public key itself directly. One benefit of this is that even if the public key hash address is leaked, the actual public key of the receiver will not be leaked, so security can be increased. At the same time, this also makes the transaction data in the blockchain more compact because the public key hash address is relatively short. In general, P2PKH is a common and simple Bitcoin transaction type that aims to improve privacy and security while keeping transaction data compact. Q·
Why is it called P2SH (Pay-to-Script-Hash)? P2SH (Pay-to-Script-Hash) is a type of transaction output in Bitcoin, introduced by Gavin Andresen in 2012. This type of transaction output allows payments to be associated with a script hash instead of directly with a public key or public key hash. This approach was introduced to support more transaction types, such as multi-signature transactions and other complex transaction scripts. In a P2SH transaction, the receiving address is a script hash instead of an actual public key or public key hash. This means that the sender only needs to know the hash of a script, not the specific content of the script. Only when spending the output is the actual script that matches the script required. One of the benefits of P2SH is that it increases the flexibility of the Bitcoin network. It enables complex transaction scripts to be traded without exposing the actual script content, and multiple different types of scripts can be hashed to the same address. This provides support for more complex transactions such as multi-signature transactions, while improving the security and privacy of the network. Therefore, as a type of transaction output, P2SH provides an important foundation for the development and innovation of the Bitcoin network. Q·
Why is it called Bech32? The Bech32 address is named after the first letter "B" of the last names of its designers Pieter Wuille and Greg Maxwell, and an error detection/repair algorithm called "ech". This algorithm uses the pronunciation rules of phonetic symbols in some languages to distinguish "1" from "l" and "0" from "o", reducing the possibility of users entering incorrect addresses. Therefore, "Bech" represents the key innovation in this address design, and "32" indicates that the address length is 32 characters. Therefore, the name of the Bech32 address can be said to be a descriptive name composed of the key features of its design. Q·
When using some BTC wallets, why is the wallet address different after each use? In some Bitcoin wallets, a new address is generated each time a transaction is received or sent. This is for privacy and security reasons: Privacy protection: Using a new address can increase the user's privacy. If the user uses the same address for each transaction, then these transactions can be traced to the same address, exposing the user's transaction history and fund flow. By using a new address, users can better protect their privacy and reduce information leakage to others.
Security enhancement: Changing addresses regularly can reduce attacks on specific addresses. If an address is tracked and attacked by a malicious party, using a new address can reduce the risk of attack. In addition, if a user's private key is exposed, only the funds on the address associated with the private key will be threatened, and the funds on other addresses will remain safe.
Follow best practices: Many security experts recommend changing your addresses regularly as a best practice to help keep your personal funds secure and private.
Although generating a new address each time may cause some inconveniences, such as the need to update the payment address, this practice can improve the user's privacy and security level, so it is adopted by many Bitcoin wallets. Q·
Shouldn't multiple addresses require changing wallets? It is true that generating new addresses is usually achieved by using elliptic curve cryptography (ECC). The elliptic curve cryptography algorithm used in Bitcoin is secp256k1, which is an encryption algorithm widely used in the field of cryptocurrency. Specifically, the wallet uses the elliptic curve algorithm to generate a pair of keys: a public key and a private key. Then, an address is generated from the public key. Each time a new address is generated, a new public and private key pair is generated, and then a new address is generated. This method ensures that each address is associated with a unique key pair, thereby enhancing security and privacy. At the same time, due to the efficiency of the elliptic curve cryptography algorithm, the process of generating new addresses is usually also very fast. Q·
Isn't that wrong? Generating multiple addresses?
Many modern Bitcoin wallets use HD Wallet (Hierarchical Deterministic Wallet) technology to manage addresses. HD Wallet can more conveniently manage a large number of addresses and provides some additional security and backup features. HD Wallet generates a series of key pairs (public and private keys) by using a seed, instead of generating a new key pair for each address like traditional wallets. These key pairs are generated according to the standards defined in BIP32 (Bitcoin Improvement Proposal 32) and BIP44 (Bitcoin Improvement Proposal 44). HD Wallet has the following advantages: Backup and recovery: By backing up the seed, users can easily back up the entire wallet and conveniently restore all addresses and funds when needed.
Determinism: Since all addresses are derived from the same seed, the entire chain of addresses can be generated deterministically without having to save the private key for each address in the wallet.
Better privacy: HD Wallet can generate a new address for each transaction without exposing the previously used address. This can enhance the user's privacy. Hierarchical structure: HD Wallet supports a hierarchical structure, which can create multiple sub-wallets, each with its own seed. This structure helps manage funds for multiple accounts or purposes. Therefore, modern Bitcoin wallets usually adopt HD Wallet technology to provide better user experience, security and privacy protection. #美国5月核心PCE物价指数年率增幅创2021年3月以来新低 #Mt.Gox将启动偿还计划 #币安合约锦标赛 #VanEck提交首个SolanaETF #IntroToCopytrading $BTC