Certified Bitcoin Professional Practice Exam

What is a key feature of Bitcoin addresses?

1. They are created using only numbers

2. They can be shared publicly

3. They are case-sensitive

4. They can be reused multiple times

The correct answer is: They are case-sensitive

The key feature of Bitcoin addresses being case-sensitive is essential because it impacts how users interact with Bitcoin transactions. Bitcoin addresses are alphanumeric strings often generated in various formats, including a mix of upper and lower-case letters. This case sensitivity means that addresses like "1A2B" and "1a2b" would represent entirely different accounts. Consequently, users must ensure they enter the address accurately, paying close attention to case, to avoid sending funds to an unintended recipient. Being case-sensitive helps in maintaining the uniqueness of each Bitcoin address, which is crucial in a decentralized ledger like the Bitcoin blockchain. If addresses were not case-sensitive, it could lead to confusion or errors when people attempt to send or receive transactions, increasing the risk of irreversible mistakes. In contrast, sharing Bitcoin addresses publicly, while common, is not inherently a key feature but rather a practice associated with their use. Reusing addresses is also not advisable for privacy reasons, and creating addresses using only numbers is not accurate, as they typically include letters as well.