Author: ts 2021-08-16 04:23:25
Published on: 2021-08-16T04:23:25+00:00
BTC addresses can pose a risk of error, even with a checksum integrated at the technical level. A proposal has been made to implement a 3 or 4 digit code, called 4DC, generated as a checksum from the address. This code would be shown in all wallets next to the receiving address and when entering an address to send BTC, it should also show the 4DC next to the entered address. The sender can then verify that the resulting 4DC matches the one from the receiving address, reducing the probability of performing transactions to a wrong address. It is easy to implement this solution, but agreeing on a checksum standard to generate the code is needed. Once the standard is established, wallet and exchange developers can start implementing this. A good name for this code would be helpful for fast adoption, such as human readable checksum, verification code or 4DC. This solution could be used for all other coins/networks, but ideally each should have its own checksum algorithm to avoid sending funds to the wrong network, especially if the address standard is the same like it is the case with BTC and BCH. The hope is that Bitcoin can implement this first and serve as an example-to-follow to other coins/networks.
Updated on: 2023-05-21T03:28:46.909012+00:00