Ethereum: What is the relationship between Bitcoin addresses and public keys?

The Relationship Between Bitcoin Addresses and Public Keys: Understanding Ethereum

Bitcoin addresses are a critical component of the blockchain, representing unique transactions between individuals or parties. However, some users may find it confusing to understand how these addresses relate to public keys. In this article, we’ll delve into the relationship between Bitcoin addresses and public keys on both Bitcoin and Ethereum blockchains.

Ethereum: The Connection Between Addresses and Public Keys

On Ethereum, a decentralized platform for creating smart contracts and decentralized applications (dApps), every transaction is represented by a unique address. These addresses are often referred to as “public keys.” However, the relationship between public keys and private keys is different from Bitcoin’s.

In Ethereum, there are two types of public keys: mnemonic-based and hexadecimal-based. A mnemonic-based public key uses a mnemonic phrase to generate a private key, which can be used to sign transactions on the blockchain. The process involves using a series of words (or phrases) known only to the individual generating the mnemonic to create a corresponding private key.

On the other hand, a hexadecimal-based public key is generated randomly and is not related to any specific private key. These public keys are commonly referred to as “seed addresses” or “reentrancy addresses.” They can be used for various purposes, such as receiving payments from Ethereum users who have sent funds to them using these addresses.

Bitcoin: The Relationship Between Addresses and Private Keys

In Bitcoin, every address is a unique identifier that represents an individual’s balance on the blockchain. These addresses are generated using a unique combination of eight characters (the “seed”) and two hexadecimal numbers (the “seed2”). This process creates a 256-bit private key for each public key.

To illustrate this further:

• A Bitcoin address with the seed ‘1234567890123456789012345678901234567890’ is equivalent to a 32-byte private key.

• The corresponding pair of hexadecimal numbers, seed2, would represent another 32-byte private key.

Key Takeaways

While both Bitcoin and Ethereum use public keys to identify transactions on their respective blockchains, the relationship between addresses and private keys differs significantly:

• In Bitcoin, each address generates a unique 256-bit private key.

• In Ethereum, every transaction is represented by a unique hexadecimal-based public key (seed address).

Conclusion

Understanding the relationship between Bitcoin addresses and public keys can be complex due to the different approaches taken by each blockchain. This article has provided an overview of how both Bitcoin and Ethereum handle public keys, as well as their respective private key generation processes.

As users familiar with one blockchain may find it easier to grasp the concepts on the other, it’s essential to appreciate the nuances in how they work together. By grasping these differences, you can better navigate the complexities of digital wallets, transactions, and private key management across multiple cryptocurrencies.