A wallet address is a string of alphanumeric characters that represents a destination on the blockchain network. This address is where cryptocurrency can be sent to and from and simply serves as an identifier for a particular user in the blockchain network.
All cryptocurrency wallets come with a wallet address, which can be shared publicly on webpages or other digital platforms. Generally, these wallet addresses are 34-62 characters long, with both uppercase and lowercase letters and numbers. The wallet address is created using a cryptographic hashing algorithm known as Secure Hash Algorithm 256 (SHA-256).
This algorithm creates a unique code that is used to identify an individual user in the network. When cryptocurrency is sent to another user’s wallet address, it creates a transaction, which is stored on the public ledger. The transaction data will contain user information, amount of currency sent and the date and time of transfer – all of which are part of the blockchain network’s immutable record of transactions (or the “blockchain”).
This means that, while users can send cryptocurrency to anyone with a wallet address, they cannot access the sender’s personal information or funds at any point in the process. The transaction will show up on the blockchain network’s public ledger as a completed transfer between two wallet addresses.
This data is then verified by miners, who add the transaction to a newly formed block of other transactions and cryptographically hash it into the blockchain.