A Bitcoin address is a unique string of letters and numbers used to send and receive Bitcoin on the Bitcoin network. It functions much like a bank account number, but instead of being linked to a traditional bank, it is connected to a digital wallet on the blockchain. When someone wants to send you Bitcoin, they need your Bitcoin address to complete the transaction.

A Bitcoin address is generated from a public key, which itself is derived from a private key. The private key is secret and must never be shared, as it provides access to the funds stored at that address. The public key is mathematically linked to the private key, and the Bitcoin address is a shortened, user-friendly representation of that public key.

Bitcoin addresses typically begin with “1,” “3,” or “bc1,” depending on the address format. For example, legacy addresses start with “1,” while newer SegWit addresses often start with “bc1.” These formats improve transaction efficiency and reduce fees.

The Bitcoin system, introduced by Satoshi Nakamoto, ensures that every address is recorded on the public blockchain, allowing transactions to be verified without revealing personal identity. Although addresses are visible to everyone, they do not automatically contain personal information, which provides a degree of privacy.

In simple terms, a Bitcoin address is your digital destination for receiving cryptocurrency securely on the blockchain network.