A bitcoin address is a unique identifier which consists of 26-35 alphanumeric characters. The identifier begins with the number 1 or 3, which represents a location where the cryptocurrencies can be sent. The bitcoin user can generate a bitcoin address without any cost. However, the bitcoin address is not permanent, that means it may change for every new transaction.

There are currently three standard address formats in use:

P2PKH: It always begins with the number 1, e.g., 1BvBMSEYvtWesqTFn5Au4n4GFg7xJaNVN2.

P2SH: It always begins with the number 3, e.g., 3J78t1WpEZ72CMnQviedrnyiWrnqRhWMLy.

Bech32: It always begins with bc1, e.g., bc1qat0srrr7xdkvy5l643lxcnw9re59gtzxwf5ndq.

A Bitcoin address is a string of alphanumeric characters that serves as a destination for Bitcoin transactions. It is generated based on a user’s public key, which is derived from their private key through a cryptographic process. Bitcoin addresses are used to receive and send bitcoins in transactions. They are essential for identifying the destination of funds and ensuring that only the intended recipient can access and control the associated bitcoins. Bitcoin addresses come in different formats, such as legacy addresses (starting with a ‘1’), Pay-to-Witness-Public-Key-Hash (P2WPKH) addresses (starting with ‘bc1’), and Pay-to-Script-Hash (P2SH) addresses (starting with ‘3’). Users share their Bitcoin addresses when they want to receive bitcoins from others. It’s important to note that while Bitcoin addresses are visible on the blockchain, the associated private keys must be kept secure to maintain control over the funds.