Cardano uses several types of addresses within its blockchain architecture, each serving different purposes. Here are the main types of addresses in Cardano:
- Base Address:
- Purpose: Used for most day-to-day transactions, combining both staking and payment capabilities.
- Structure: Contains both a payment key (used to receive ADA) and a staking key (used for delegation and staking rewards).
- Enterprise Address:
- Purpose: Primarily for non-staking purposes, such as business or institutional use where staking isn’t needed.
- Structure: Contains only a payment key, with no staking information.
- Reward Address:
- Purpose: Specifically used for receiving staking rewards.
- Structure: Tied directly to a staking key and not meant for sending or receiving normal ADA transactions.
- Pointer Address:
- Purpose: Used to minimize data storage, referring to specific locations on the blockchain rather than containing the full staking information.
- Structure: Contains a pointer to a staking key via a specific blockchain slot, reducing the need to store staking details in the address.
- Script Address:
- Purpose: Used by smart contracts and multisig transactions on the Cardano blockchain.
- Structure: Tied to a script rather than a payment key, allowing for more complex conditions for spending funds.
Each of these addresses has a unique role, and their selection depends on whether you’re participating in staking, regular transactions, or smart contracts.
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