Address

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In blockchain, an address is a unique identifier that allows users to send and receive cryptocurrency or interact with the network. It is derived from a user’s public key through cryptographic algorithms, ensuring security and uniqueness. A blockchain address functions like a bank account number but is typically represented as a long string of alphanumeric characters. Different blockchains use different formats for addresses—Bitcoin addresses often start with “1,” “3,” or “bc1,” while Ethereum addresses begin with “0x.”

Addresses do not store funds themselves; instead, they refer to balances recorded on the blockchain. An address doesn’t actually store funds; it simply acts as a reference to a balance recorded on the blockchain. When someone transfers cryptocurrency to an address, the transaction is broadcast to the network, verified by nodes, and permanently added to the blockchain. To access and control the assets linked to an address, the owner must use their private key, which acts as a digital signature. Because blockchain transactions are irreversible, users must double-check addresses before sending funds, as mistakes can lead to permanent loss.

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