Address

Key points

• An address is the public string that identifies where a crypto transaction should go within a specific blockchain.
• Each address derives from a public key, usually through a hash function, and can be shared without exposing the private key.
• Addresses are specific to each network: sending an asset to an incompatible blockchain address usually results in permanent loss of the funds.

What is an address?

An address is the string of characters that designates the location of a wallet on a blockchain. It works similarly to a bank account number: whoever wants to receive crypto provides the address, and whoever sends it uses that data as the destination. Unlike a bank account, the address does not hold a balance by itself, it only points to records on the chain.

How it works

The address is derived from the user's public key, on most networks by applying a hash function to that key. The result is a shorter string that is more convenient to copy and share. The corresponding private key remains secret and is what authorizes spending the funds linked to the address.

Each network has its own format. Bitcoin addresses, addresses on networks compatible with the Ethereum virtual machine, and Solana addresses have distinct structures, with characteristic prefixes and lengths. Many formats include check digits that help detect typing errors before sending.

Since blockchain transactions are irreversible, the destination address needs to be exact. It is common to check the first and last characters, use QR codes, or copy directly to avoid accidentally swapping in a similar-looking address.

The same user can generate as many addresses as they want from their wallet, at no cost. Using a different address for each receipt is a practice that makes it harder to link payments together and improves privacy, since the history of each address is exposed on the chain.

Why it matters

For those receiving international crypto payments, the address is the central operational piece of data. A freelancer who invoices in USDC, for example, provides an address on the correct network to the client and receives the payment without a traditional banking intermediary. The costliest mistake is mixing up networks: each address is only valid on the blockchain it was generated for.

Risks and limitations

Addresses are pseudonymous, not anonymous: all associated activity is public and traceable on the chain. Malicious software can swap the address copied to the clipboard, and transfers to the wrong address usually cannot be reversed. Checking the destination before signing is the main safeguard.