What Is the Difference between a P2PKH and a P2SH Address?
P2PKH (Pay-to-Public-Key-Hash) is the original, standard Bitcoin address format, starting with '1'. It locks funds to a single public key hash, requiring a single signature for spending.
P2SH (Pay-to-Script-Hash) addresses start with '3' and lock funds to the hash of a script. This allows for more complex spending conditions, such as multisignature requirements, without the sender needing to know the complex script itself.
Glossar
Standard Bitcoin Address
Architecture ⎊ A Standard Bitcoin Address, typically beginning with ‘1’, represents a Pay-to-Public-Key-Hash (P2PKH) scheme, functioning as a destination for Bitcoin transfers within the network’s distributed ledger.
Bech32
Definition ⎊ Bech32 is a specific address format designed for Bitcoin and other cryptocurrencies, distinguished by its use of a base-32 encoding scheme.
Multisignature
Architecture ⎊ Multisignature schemes represent a cryptographic protocol demanding multiple private key authorizations to validate a transaction, fundamentally altering single-signature control.
P2SH Address
Architecture ⎊ A Pay-to-Script-Hash (P2SH) address functions as a complex spending condition within the Bitcoin protocol, enabling multi-signature wallets and more intricate contract logic without directly exposing the script itself on the blockchain.
Redeem Script
Mechanism ⎊ A redeem script, within the context of cryptocurrency and decentralized finance, functions as a set of conditions governing the spending of funds locked within a smart contract, typically a multi-signature or timelock contract.
Public Key
Address ⎊ The public key mathematically derives the wallet address used to receive funds, collateral, or option contract payouts on the blockchain.