Cryptocurrencies are digital assets that operate on a decentralized network of computers, called a blockchain.

A blockchain is a ledger of transactions that is secured by cryptography and distributed across multiple nodes. Some of the most popular cryptocurrencies are Bitcoin, Ethereum, and Binance Coin, which have different features and use cases.

One of the most common questions that beginners have about cryptocurrencies is what is the difference between a wallet address and a public key. These are two important concepts that are related to how you can send and receive cryptocurrency transactions on the blockchain. In this post, we will explain what a wallet address and a public key are, how they are generated and used, and what are the main differences between them.

What is a Wallet Address?

A wallet address is a unique identifier that represents a destination for sending and receiving cryptocurrency transactions. It is like an account number or an email address that you can share with others to receive payments. A wallet address is derived from a public key, which is a cryptographic code that is used to verify transactions on the blockchain.

There are different types of wallet addresses, depending on the cryptocurrency and the format that they use. For example, Bitcoin has two main types of wallet addresses: Base58 and Bech32. Base58 addresses start with either 1 or 3, and are composed of alphanumeric characters, except for 0, O, I, and l. Bech32 addresses start with bc1, and are composed of lowercase alphanumeric characters, except for 1 and b. Base58 addresses are more widely supported, but Bech32 addresses are more efficient and secure.

Other cryptocurrencies have their own types of wallet addresses, such as Ethereum, which uses P2SH addresses that start with 0x, and Binance Coin, which uses BEP-20 addresses that also start with 0x. The length and format of wallet addresses may vary, but they all serve the same function of identifying a destination for transactions.

There are different ways to generate a wallet address, such as using a software or hardware wallet, a web or mobile app, or a paper wallet. A software or hardware wallet is a program or a device that allows you to create and manage your wallet address and private key. A web or mobile app is a platform that provides you with a wallet address and a private key, but stores them on a third-party server. A paper wallet is a piece of paper that contains your wallet address and private key, printed as QR codes or text.

What is a Public Key?

A public key is a cryptographic code that is derived from a private key, which is a secret code that is used to sign transactions and prove ownership of a wallet address. A public key is used to encrypt and decrypt messages, and to verify the authenticity and integrity of transactions on the blockchain. A public key is linked to a wallet address through a hashing function, which is a mathematical operation that converts any input into a fixed-length output.

There are different types of public keys, depending on the cryptocurrency and the algorithm that they use. For example, Bitcoin uses the Elliptic Curve Digital Signature Algorithm (ECDSA), which generates public keys that are 33 or 65 bytes long. Ethereum uses the same algorithm, but with a different curve, which generates public keys that are 64 bytes long. Binance Coin uses the Schnorr Signature Algorithm, which generates public keys that are 32 bytes long.

Other cryptocurrencies may use different algorithms, such as Taproot, which is a proposed upgrade for Bitcoin that would enable public keys that are 32 bytes long and support more complex transactions. The size, speed, and privacy of public keys may vary, but they all serve the same function of verifying transactions on the blockchain.

There are different ways to obtain a public key, such as using a wallet software or app, or extracting it from a transaction script. A wallet software or app can generate and display your public key, along with your wallet address and private key. A transaction script is a set of instructions that defines how a transaction can be spent, and it may contain your public key or a hash of it.

What is the Difference Between a Wallet Address and a Public Key?

The main differences between a wallet address and a public key are:

• Function: A wallet address is used to identify a destination for transactions, while a public key is used to verify transactions.
• Format: A wallet address is a human-readable string of characters, while a public key is a machine-readable code of bytes.
• Security: A wallet address is a hashed version of a public key, which means it is more secure and less vulnerable to attacks, while a public key is exposed on the blockchain and can be derived from a private key.

Some of the advantages and disadvantages of using a wallet address or a public key for sending and receiving cryptocurrency transactions are:

• Wallet Address: A wallet address is easier to use and share, as it is shorter and simpler than a public key. However, a wallet address may not be compatible with all cryptocurrencies or platforms, as there are different types and formats of wallet addresses.
• Public Key: A public key is more versatile and flexible, as it can support more complex transactions and features, such as multisig, timelock, and smart contracts. However, a public key is harder to use and share, as it is longer and more complicated than a wallet address.

Some of the tips and best practices for managing and protecting your wallet address and public key are:

• Use a reputable wallet service that supports the cryptocurrency and the type of wallet address that you want to use.
• Back up your private key and store it in a safe and secure place, as it is the only way to access your wallet address and public key.
• Avoid phishing scams and malware that may try to steal your wallet address, public key, or private key, by checking the source and the validity of any message or link that you receive.

Conclusion

In this post, we have explained what a wallet address and a public key are, how they are generated and used, and what are the main differences between them. A wallet address is a unique identifier that represents a destination for sending and receiving cryptocurrency transactions, while a public key is a cryptographic code that is used to verify transactions on the blockchain. A wallet address is derived from a public key, which is derived from a private key. A wallet address is easier to use and share, but may not be compatible with all cryptocurrencies or platforms, while a public key is more versatile and flexible, but harder to use and share. You should use a reputable wallet service, back up your private key, and avoid phishing scams and malware, to manage and protect your wallet address and public key.

We hope that this post has helped you to understand the difference between a wallet address and a public key in crypto. If you have any feedback, questions, or suggestions, please leave them in the comments section below. Thank you for reading, and stay tuned for more crypto-related content.