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Wallet Address Meaning

A wallet address is a string of alphanumeric characters representing the destination for cryptocurrency transactions. Derived from the user’s public key through hashing and encoding, addresses allow senders to specify where to deliver funds.

Different blockchains have distinct address formats; for example, Bitcoin addresses start with ‘1’, ‘3’, or ‘bc1’, while Ethereum addresses begin with ‘0x’. A single wallet can generate many addresses to enhance privacy and security, as using a new address for each transaction makes it harder to trace a user’s entire balance.

Unlike private keys, addresses can be shared publicly to receive payments.

Ensuring that the correct address format is used is critical; sending funds to an incorrect or incompatible address can result in permanent loss.

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