Bitcoin Cash's New Address Format: CashAddr Explained

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Bitcoin Cash (BCH) introduced the CashAddr format starting with version 0.16.2, replacing the legacy Bitcoin-style addresses. This update ensures all RPC commands—like listunspent, listtransactions, and validateaddress—display addresses in the new CashAddr format.

Key Differences Between Legacy and CashAddr Formats

  1. One-to-One Correspondence: Each CashAddr corresponds to a legacy address, sharing the same private key but differing in representation.
  2. Interoperability: Funds can be sent between CashAddr and legacy addresses seamlessly.
  3. Case Insensitivity: CashAddr addresses are case-insensitive (e.g., uppercase or lowercase), though lowercase is preferred.
  4. Optional Prefix: CashAddr prefixes (e.g., bitcoincash:) are optional, while legacy addresses rely on initial characters to denote type.
  5. Encoding: CashAddr uses Base32; legacy addresses use Base58.
  6. No Fork Required: The transition to CashAddr isn’t a soft or hard fork, though debates persist about its classification.

Why CashAddr Was Introduced

Post-fork, Bitcoin Cash and Bitcoin (BTC) diverged significantly. While BTC adopted SegWit and P2SH-SegWit addresses, BCH introduced CashAddr to:

Example CashAddr Formats:

Challenges with CashAddr

Moving Forward

Despite drawbacks, adopting CashAddr is essential to phase out compatibility issues. Developers are encouraged to prioritize broader ecosystem challenges over incremental format tweaks, as prolonged transitions strain resources.

👉 Explore secure BCH tools for address conversion and more.

FAQs

Q1: Can I still use legacy BCH addresses?
A: Yes, but CashAddr is recommended to avoid future compatibility issues.

Q2: How do I convert a legacy address to CashAddr?
A: Use trusted tools like CashAddress Conversion or BTC.com’s converter.

Q3: What happens if I send BCH to a BTC address?
A: Funds may be recoverable by importing the BCH private key into a BTC wallet, but this depends on the recipient’s policies.

Q4: Is CashAddr more secure than legacy addresses?
A: Both formats are equally secure; CashAddr primarily reduces human error in transactions.

Q5: Why does CashAddr look different from legacy addresses?
A: Base32 encoding and a structured format (network prefix + payload) improve error detection but alter visual appeal.

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