What is Bitcoin Address or Bitcoin Wallet Address?
The Bitcoin Address or Bitcoin Wallet Address or simply “Address” is a unique set of characters similar to bank account number and it helps you to send and receive bitcoins. Bitcoin Address is a set of 26-35 characters (combination of letters and numbers). For Eg: 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy. Every user will have different bitcoin addresses for every bitcoin transactions, and it will be advisable to create a new bitcoin wallet address for receiving bitcoins every time to improve the privacy of your transaction history. Users can also share their bitcoin wallet address with others by using their bitcoin address. Moreover, users can also use QR code as a Bitcoin Wallet address for their Bitcoin transactions. If somebody wants to send their Bitcoin, they can scan the QR code by using their Bitcoin Wallet.
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How to create Bitcoin Address for Bitcoin Transactions?
Bitcoin Addresses are mostly of 34 characters with the combination of random digits, uppercase and lowercase letters. Some of the letters like the uppercase letter “O”, uppercase letter “I”, lowercase letter “l”, and the number “0” will not be generated in Bitcoin Wallet Address as they can create visual ambiguity. To generate new Bitcoin Address, open your Bitcoin wallet and navigate to receive bitcoins menu. Then tap on create the new address, and you will find the Bitcoin Address, and you can use this address to receive bitcoins from others.
Creating Bitcoin Wallet Address can be done in offline mode also. It is possible to generate large batches of addresses in offline by using freely available software tools. It will be useful in scenarios where the unique pre-generated address is dispensed to every user who selects the option of “pay with bitcoin.”
How Does Bitcoin Address work?
The critical aspect of the Bitcoin is users privacy. Since the nature of the Bitcoin blockchain is open ledger, it makes privacy more difficult. The best way to improve your privacy is by creating new wallet address at every time you conduct a bitcoin transaction. Once you used your bitcoin wallet address, it will become tainted by the history of all previous transactions. So it is advisable to use the new address on every transaction.
Read about What is Bitcoin Client?
Most of the current Bitcoin Wallets have a function to sign the message, which proves the entire receiving funds with the address has admitted to the message. It can be used to conclude the contract in a cryptographically certain way before making payment. Some of the services will piggy-back on this capability by applying a specific address for authentication only, where the address should never be used for actual Bitcoin transactions. When you log in to or use their service, you will provide a signature proving that you are the same person with the old-negotiated address.
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