What are the differences between BIP84 and other cryptocurrency address formats?

3 answers

• Jan 12, 2022 · 3 years ago
  BIP84, also known as Bech32, is a newer address format introduced in Bitcoin. It offers several advantages over other address formats, such as increased security and better error detection. The main difference is that BIP84 addresses start with 'bc1' instead of '1' or '3'. This format is more efficient and supports SegWit, which reduces transaction fees and improves scalability. However, not all wallets and exchanges support BIP84 addresses yet, so it may not be widely adopted.
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• Jan 12, 2022 · 3 years ago
  BIP84 addresses are more secure because they use a checksum to detect errors in the address. This helps prevent accidental loss of funds due to typos or other errors. Additionally, BIP84 addresses are less prone to certain types of attacks, such as address substitution. However, it's important to note that BIP84 addresses are not backward-compatible with older address formats, so they cannot be used interchangeably.
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• Jan 12, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, supports BIP84 addresses and encourages their use. BIP84 addresses offer enhanced security and better compatibility with modern wallets. However, it's important to consider the limitations of BIP84, as not all wallets and exchanges have adopted this format yet. It's always a good idea to check if the platform you're using supports BIP84 addresses before making transactions.
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