How Does a Public Key Relate to a Bitcoin Address?
The public key is mathematically derived from the private key using elliptic curve cryptography. The Bitcoin address is then generated by applying a series of cryptographic hashing functions (like SHA-256 and RIPEMD-160) to the public key.
This process creates a shorter, more user-friendly representation for receiving funds. The public key is revealed only when the funds are spent, while the address is public.
Glossar
Hashing the Public Key
Algorithm ⎊ Hashing the public key involves applying a sequence of cryptographic hash functions, typically SHA-256 followed by RIPEMD-160.
Cryptographic Hashing Functions
Derivation ⎊ Cryptographic hashing functions, within cryptocurrency, establish deterministic outputs from variable-length inputs, crucial for block creation and transaction integrity; these functions are foundational to blockchain security, preventing unauthorized modification of data through collision resistance.
Public Key
Address ⎊ The public key mathematically derives the wallet address used to receive funds, collateral, or option contract payouts on the blockchain.