Bitcoin Addresses Explained

A Bitcoin address serves the same purpose as a bank account number, in that it is used for transferring funds.

Unlike bank account numbers Bitcoin address are not assigned by a central authority.

They are in fact just random alphanumeric numbers and can be created manually but are generally created by a Bitcoin wallet.

Bitcoin addresses come in different formats, depending on the version of the address scheme used. The most common formats are:

1. Legacy Addresses (beginning with a “1”): These were the original format used in Bitcoin and are compatible with all Bitcoin wallets. They are longer and less efficient in terms of space usage.
2. Pay-to-Public-Key-Hash (P2PKH) Addresses (beginning with a “3”): These addresses are used in multi-signature transactions and more advanced Bitcoin scripts.
3. Segregated Witness (SegWit) Addresses (beginning with “bc1”): SegWit addresses were introduced to improve scalability and reduce transaction fees. They are more space-efficient and support advanced features like transaction malleability fixes and the Lightning Network.

When sending Bitcoin, it is crucial to double-check the address to ensure accuracy.

This is because Bitcoin transactions are irreversible, and if you send funds to an incorrect or mistyped address, the funds may be permanently lost.

It’s worth noting that a single Bitcoin wallet can have multiple addresses associated with it.

This allows users to generate new addresses for each transaction, enhancing privacy and security by reducing the traceability of funds.

Personal Note: I’m not really sure if this is a good idea

Bitcoin Test Network Addresses

Addresses used on Bitcoin test networks are different than that those used on the mainnet

Bitcoin Test Network Addresses (testnet)

Here are some example addresses for the Bitcoin test network, also known as the Bitcoin Testnet:

1. Public Address (Pay-to-Pubkey-Hash):
   • Testnet address: mgnucj8nYqdrPFh2JfZSB1NmUThUGnmsqe
   • Private key (WIF): cN9k7U9S7s5aJ31iRn5c9B9E8KVP5Vg4PJx5YhyW7wHy1VqjVqm5
2. Public Address (Pay-to-Script-Hash):
   • Testnet address: 2N3WBNpmyBdpKFL3fMuHb5w56JKTVN6pVcq
   • Private key (WIF): cTFjn8j6VGxgHHrNXH2Le1vTDSSm86xEcsF5c59J6pJZ3wX6WxuT
3. Public Address (Segregated Witness – Pay-to-Witness-Public-Key-Hash):
   • Testnet address: tb1q9g6sxdm7enaz5eua4kcpv4gxjltjplzegqxxn2
   • Private key (WIF): cU5R44G8cvHwRMhVosHeEVZe59tWAsfKsjuEi8DJYJ6D2X8G3b6U

Bitcoin Test Network Addresses (regtest)

Here are some example addresses for the Bitcoin regtest (regression test) network:

1. Public Address (Pay-to-Pubkey-Hash):
   • Regtest address: mg3pMJZnDx69yjRTGw12Lw9ZkgnBEBiicR
   • Private key (WIF): cSUNPeJiC6ZJ4En2gGtNrBwsSz5xfUGfKZY4QJrcH7ewG9ZCWh5M
2. Public Address (Pay-to-Script-Hash):
   • Regtest address: 2MxAeSFz9ThsEDW2wW7RY4ZzGNK1M7mEATU
   • Private key (WIF): cQV4dXdDEfCxj51N3ThWvqk2zwbfMwGw9KcBx7RUKZAW4M7rX6rn
3. Public Address (Segregated Witness – Pay-to-Witness-Public-Key-Hash):
   • Regtest address: bcrt1q5n3vhml5hwwru3scn5sw6e3xs4p5ggmvh6tpe3
   • Private key (WIF): cU2YKFpwYTXxZzZB46Hv7xbs2Pp6VggEF4UqTVjDft5MRCzmdV3m

Related Tutorials and resources:

• Bitcoin For Complete Beginners
• How to Set Up a Bitcoin Regtest Test Network
• Bitcoin Test Networks
• Introduction to Bitcoin Core
• Examining Blockchain Layers