Capterra Glossary
Bitcoin Address
A bitcoin address is a unique identifier that represents a virtual location that cryptocurrencies can be used to send or receive bitcoin. When businesses create a bitcoin wallet, they receive both a public and private key. The private key proves a business owns a specific bitcoin wallet and the public key is used to send and receive funds. A bitcoin address is a hashed version of a public key, and is usually converted into a QR code that can be easily scanned during a transaction. Bitcoin addresses typically consist of a string of 26 to 35 alphanumeric characters or a QR code. Bitcoin addresses act as a token for a single transaction and cannot hold a bitcoin account balance. For each new transaction, a business must generate a new single-use bitcoin address to provide to the customer to facilitate the transaction.
What Small and Midsize Businesses Need to Know About Bitcoin Address
Today, many small businesses are accepting bitcoin as a form of payment. This is because accepting cryptocurrencies as a form of payment helps corporations expand their customer base to people who do not possess or wish to use a traditional bank account to facilitate transactions. To receive bitcoin payments from customers, a business must give the customer a newly generated bitcoin address to send their funds to. Typically, companies will generate a QR code that customers can easily scan to complete the transaction.
Related Terms
- Synchronous
- Software as a Service (SaaS)
- Intranet
- Security Orchestration, Automation and Response (SOAR)
- Identity and Access Management (IAM)
- Managed Service Provider (MSP)
- Haptics
- WAN (Wide-Area Network)
- Service-oriented Architecture (SOA)
- Augmented Reality (AR)
- Chief Information Officer (CIO)
- Security Information and Event Management (SIEM)
- Platform as a Service (PaaS)
- Service-Level Agreement (SLA)
- Scalability
- Data Center
- Authorization
- Multitenancy