A bitcoin address is created by taking the corresponding public key of a private key and hashing it twice, first with the SHA-256 algorithm and then with RIPEMD-160.
The resultant 160-bit hash is then prefixed with a version number and finally encoded with a Base58Check encoding scheme.
How Public Keys Become Wallet Addresses (Part 2)
The bitcoin addresses are 26-35 characters long and begin with digit 1 or 3.
A typical bitcoin address looks like a string shown here: 1ANAguGG8bikEv2fYsTBnRUmx7QUcK58wt This is also commonly encoded in a QR code for easy distribution.
The QR code of the preceding bitcoin address is shown in the following screenshot: QR code of a bitcoin address 1ANAguGG8bikEv2fYsTBnRUmx7QUcK58wt Currently, there are two types of addresses, the commonly used P2PKH and another P2SH type, starting with number 1 and 3, respectively.
In the early days, Bitcoin used direct Pay to Pubkey, which is now superseded by P2PKH.
However, direct Pay to Pubkey is still used in Bitcoin for coinbase addresses.
Addresses should not be used more than once; otherwise, privacy and security issues can arise.
Why This Matters for Blockchain Technology
Avoiding address reuse circumvents anonymity issues to an extent, Bitcoin has some other security issues as well, such as transaction malleability, Sybil attacks, race attacks and selfish mining which require different approaches to resolve.
Transaction malleability has been resolved with so-called Segregated Witness soft fork upgrade of the Bitcoin protocol.
From bitaddress.org, private key and bitcoin address in a paper wallet
Key Points to Remember
- Addresses in Bitcoin A bitcoin address is created by taking the corresponding public key of a private key and hashing it twice, first with the SHA-256 algorithm and then with RIPEMD-160.
- The resultant 160-bit hash is then prefixed with a version number and finally encoded with a Base58Check encoding scheme.
- The bitcoin addresses are 26-35 characters long and begin with digit 1 or 3.
- A typical bitcoin address looks like a string shown here: 1ANAguGG8bikEv2fYsTBnRUmx7QUcK58wt This is also commonly encoded in a QR code for easy distribution.
Conclusion
Addresses in Bitcoin represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.