What Is the Purpose of Hashing the Public Key to Create an Address?
Hashing the public key to create a Bitcoin address serves several purposes. Firstly, it shortens the key, making the address more manageable and easier to share.
Secondly, the hashing process introduces an additional layer of security, as the public key is not revealed until the funds are spent. Finally, the resulting hash is used in conjunction with a checksum to create the final address, which helps detect typing errors.
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.
Hashing Process
Computation ⎊ Hashing processes, within cryptocurrency, options trading, and financial derivatives, represent a deterministic algorithm transforming variable-length input data into fixed-size outputs, crucial for data integrity and security.
Hashing
Cryptography ⎊ Hashing functions are foundational to the security of cryptocurrency systems, providing a deterministic transformation of input data into a fixed-size output, crucial for block creation and transaction verification.
Public Key
Address ⎊ The public key mathematically derives the wallet address used to receive funds, collateral, or option contract payouts on the blockchain.