Ethereum: Why are Bitcoin addresses hashes of public keys?
Ethereum: Why are Bitcoin addresses recognized as public key hashes?
The Bitcoin blockchain is built on top of Ethereum, one of the most popular decentralized applications (dApps) on the Ethereum network. One of the main aspects of both Bitcoin and Ethereum is how they generate and verify transactions and addresses. Although these concepts may seem similar at first glance, there are some key differences in how each system approaches address generation.
Understanding Bitcoin Addresses
Bitcoin addresses are generated from the public key using re-hashing with SHA-256 and RIPEMD160. This process creates a unique identifier for each transaction. The basic idea is that the public key serves as a fingerprint or signature of the sender, and by combining it with several hash functions, the creator ensures the integrity and uniqueness of the address.
Why are Bitcoin addresses recognized as hashes?
In the case of Ethereum, addresses are hashes of their corresponding public keys. Here’s why:
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Security
: By hashing the public key, the sender can guarantee that any changes to the key (for example, if the private key is lost or compromised) will significantly change the public key, making it difficult for anyone else to create an address from the new key.
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Uniqueness: Each Ethereum address has a unique identifier based on the corresponding public key. This uniqueness ensures that there can be no duplicate addresses, which is a critical aspect of a decentralized system.
Understanding Ethereum usage
Ethereum uses hashes for another reason: to maintain the integrity and authenticity of transactions between different nodes in the network. The process involves using the sender’s public key (in hashed form) together with its private key (or a mnemonic phrase, if it exists). This setting ensures that any transaction sent by a user must be approved by all nodes in the network before it is considered valid.
Key differences
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Purpose
: Bitcoin addresses are primarily a form of digital currency and intended for quick transfers. The Ethereum address system is more complex and is used for a wide range of dApps.
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Security Measures: Although both systems use hashing, Ethereum goes further by implementing additional security measures such as Message Authentication Codes (MACs) to ensure the authenticity of transactions.
Conclusion
In conclusion, it should be said that Bitcoin addresses are hashes of their corresponding public keys, which serve several entities in the blockchain system. This unique approach ensures security and uniqueness throughout the Ethereum network. Although similar concepts exist on other platforms, the integration with a wide range of decentralized applications such as Ethereum makes its address hashing strategy particularly effective for these types of dApps.