Cryptocurrency Address – What it is, definition and concept | 2022

A cryptocurrency address consists of an identifier in which cryptographic assets can be stored, such as cryptocurrencies.

For a cryptocurrency address to be valid, it must belong to a blockchain. That is, if to have a current account it is necessary to be linked to a bank, in the case of addresses a blockchain is necessary.

In addition, NFTs (Non Fungible Tokens) can also be hosted, which translated into Spanish would be: non-fungible tokens.

Characteristics of cryptocurrency addresses

As mentioned above, a cryptocurrency address is to a checking account what a bank is to a blockchain:

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Then, the cryptocurrency address is characterized by hosting assets not directly regulated by a central bank. Also, because it does not house traditional money, but rather assets that have their own value, which in the most similar case replicate the value of fiat money. This is the case of the so-called ‘stablecoins’.

On the other hand, the blockchain system mimics the storage and transfer function of the banking system, making it a potential competitor in terms of basic utilities.

Finally, it should be noted that the characters that make up a cryptocurrency address have nothing to do with that of a checking account. If an account normally has a minimum of 16 characters, in which a certain common sense reigns (initials of the country, plus the numbers that make them up based on branch, specific bank and client).

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This is not the case with cryptocurrency addresses, since they randomly combine lowercase and uppercase letters along with numbers. Of course, depending on the specific project and the chain of blocks, they will have certain patterns with which they differ from each other.

Example of a cryptocurrency address

In order to shape a cryptocurrency address, examples of BTC (Bitcoin) and ETH (Ethereum) will be exposed below.

First of all, we would have the chain of blocks that encompasses the BTC ecosystem, which can start with the number 1 or 3:

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It is important not to confuse it with BCH (Bitcoin Cash), which is also a project linked to bitcoin, but it is not.

Second, we expose a possible ETH address:

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In this case they start with the characters ‘0x’ and are longer than those given in BTC.

In short, as can be seen, a current account has nothing to do with a cryptocurrency address, except in its mission: to store and transfer assets safely and transparently. Although in the case of addresses, privacy and anonymity is what can be highlighted the most about this system.

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