Ethereum: Bitcoin – differences between address, account and wallet

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Understanding the differences between the Ethereum address, account and portfolio

In the world of cryptocurrencies, there may be overwhelming navigation after complex terminology used by programmers, enthusiasts and even experienced users like you. Two critical concepts that are often confused or overlooked are the Ethereum address, account and wallet. In this article, we will break down the differences between these three terms to better understand how they interact with your digital resources.

Ethereum address

The Ethereum address is a unique identifier assigned to each user or an intelligent contract for blockchain ethereum. It is a 42-far-sinked hexagonal string that represents a specific transaction or online account. Each character in the address corresponds to the digit, and each combination of characters is a separate address (e.g. “1A1B2C3 …”).

Ethereum addresses can be used to send, receive and store ether (ETH), Ethereum Classic (etc.) and other ERC-20 tokens. When creating an account in Blockchain Ethereum, your unique eThereum address is automatically generated.

Example of Ethereum address

0x1234567890ABCDEF

This address indicates that this user has created a new Ethereum account with an appropriate mnemonic phrase or a private key. The “0x” prefix represents a hexadecimal format.

Account vs. Wallet: What is the difference?

Account

on Blockchain Ethereum refers to a specific entity, such as an individual portfolio, company or decentralized application (DAPP). The account is basically a set of transactions and data related to this particular user or unit.

On the other hand,
wallet is a program that allows users to store, send and receive ether, ERC-20 tokens and other resources. Wallets are usually managed via a digital interface, such as a computer application, web browser extension or mobile application.

Think about the account as a “place” where transactions (e.g. a bank account) take place, while the wallet is a tool that facilitates these transactions (e.g. a digital wallet such as Metamask).

key results

To sum up:

  • Ethereum address: A unique identifier of your user account on blockchain

  • Account: unit with blockchain ethereum, such as a wallet or DAPP

  • Wallet: the program that stores, sends and receives the ether and other resources

Understanding these differences, you will be better prepared to move around the complex world of Ethereum and make informed decisions regarding digital investments.

Resources

For more information about the addresses, account and Ethereum wallets, read:

Note: These resources contain detailed explanations and examples for each concept that can help explain any confusion.