Have you ever wondered if a Bitcoin (BTC) address could consist of human-readable words instead of random letters? You may be familiar with the Lightning Network, which allows for the creation of fancy BTC addresses that resemble email or web domains. However, there is also a method for generating Bitcoin addresses on the original Bitcoin blockchain that contain human-readable words. These addresses are known as vanity Bitcoin addresses.
A vanity Bitcoin address is a personalized BTC address that incorporates a specific pattern or word within its alphanumeric character string of 26-35 characters. Unlike a regular Bitcoin address, which consists of random characters, a vanity Bitcoin address allows users to customize their addresses or even convey a specific message through the address itself.
The term “vanity address” is derived from the literal meaning of the word “vanity,” which refers to excessive pride in oneself or one’s appearance. In line with this definition, vanity addresses are used by individuals who want to stand out and give their wallet address a unique identity.
Vanity Bitcoin addresses gained popularity a few years after the anonymous creator of Bitcoin, Satoshi Nakamoto, launched the cryptocurrency in 2009. The first vanity address generator, called “VanityGen,” was released as an open-source platform on GitHub in 2012. References to vanity addresses on Bitcointalk.org, a major crypto forum created by Nakamoto, can be traced back to 2013.
According to Bitcoin analyst Josef Tetek from Trezor, Nakamoto did not use vanity addresses as he disappeared from the public eye before they became popular in 2011.
In addition to the Bitcoin blockchain, vanity addresses are also available on other networks, including the Ethereum blockchain. However, Ethereum vanity addresses only consist of hexadecimal numbers, as Ethereum addresses can only include the letters “A” through “F” and numbers zero through nine.
According to the ETH Optimism vanity address generator, it would take up to five minutes to create an Ethereum vanity address starting with “0xFad69.”
There are two methods for creating a Bitcoin vanity address: manual generation and the use of specialized vanity address generator services. Manual generation involves using software and requires computational power and coding skills to run programs that search for Bitcoin addresses starting with specific word combinations.
Many Bitcoin experts, including Trezor’s Tetek, believe that manual generation is the most secure method for creating a vanity Bitcoin address, as it allows users to keep their seed phrase private. Being the sole owner of a private key or seed phrase ensures that the user has complete control over the funds associated with the address.
The manual method requires the installation of vanity address-generating software, such as VanityGen, which can be found on the cloud-based software website, GitHub. Running this software requires a certain level of computational power, with longer sequences of symbols requiring more time to generate a vanity address. It is estimated that generating a five-symbol word vanity address takes about one hour on a regular personal computer, while larger sequences like seven symbols could take up to three months. More advanced setups involving powerful graphics cards or application-specific integrated circuit (ASIC) chips can significantly reduce the time required.
The second method of creating a vanity address is simpler but less secure, as it involves delegating the address search to third-party services known as “vanity address miners.” However, relying on these services carries significant risks, as the miners have access to the private key and can potentially take over the address and its assets at any time. The private key is generated at the moment the Bitcoin address is created and cannot be changed afterwards.
Vanity generation services are often offered through websites like Vanitygen.net, where users can order a specific word or sequence to be searched using purchased computational power. These services typically allow users to order a sequence of up to eight letters. Once generated, the private key for the vanity address is sent to the customer’s email in exchange for an agreed-upon price. For example, generating a Bitcoin vanity address starting with “1Satoshi…” would cost around 0.0217 BTC, equivalent to approximately $600.
It’s important to note that not all letters and numbers can be included in a vanity Bitcoin address, similar to a regular BTC address. Certain letters, such as the uppercase letter “O,” the uppercase letter “I,” the lowercase letter “L,” and the number “0,” are excluded from the set of available alphanumeric characters in all Bitcoin addresses. This exclusion helps prevent confusion when sending funds on the Bitcoin blockchain.
Using a Bitcoin vanity address involves certain risks. Ultimately, the decision to use a vanity address depends on the individual’s reasons for wanting one and their willingness to accept the associated risks. Some cryptocurrency exchanges, like BitMEX, have experimented with vanity addresses using the native Segregated Witness (SegWit) address format Bech32 with the “bc1qmex…” prefix. BitMEX has used vanity addresses for marketing purposes and to make it more difficult for attackers to scam users. However, vanity addresses should not be relied upon as a security mechanism, as advanced attackers can still replicate the vanity address format.
Trezor’s Tetek strongly advises against using vanity addresses, as they promote address reuse, which is not recommended for privacy reasons. In addition to privacy and asset safety risks, vanity BTC addresses are also associated with security vulnerabilities. In 2022, hackers exploited a vulnerability in the Ethereum vanity address-generating tool Profanity to steal $3.3 million in crypto. Similarly, in March 2023, attackers used hacked vanity addresses to steal $500,000 worth of tokens from Arbitrum’s layer-2 scaling solution airdrop.
Although Bitcoin vanity addresses have become less popular since 2011, there is evidence that they are still being used. There have been reports of Bitcoin vanity addresses containing swear words directed at Russian President Vladimir Putin. These addresses have been involved in transactions totaling 0.29 BTC ($7,595) between 2018 and 2020. One of the recorded transactions included a 0.0004 BTC ($10) transaction to the public Bitcoin address of renowned Bitcoin critic Warren Buffet, who received a BTC address and a gift from Tron founder Justin Sun.
The future of Bitcoin vanity addresses depends on various factors. The development of more secure and user-friendly tools is necessary to address the security risks associated with vanity address generators. Vanity address creation could become more accessible to a wider audience as blockchain systems evolve and incorporate new features. However, privacy concerns related to address reuse will continue to be a significant consideration. Users who desire personalized addresses must weigh the advantages of uniqueness against potential privacy breaches.
While it’s crucial to understand the risks and costs associated with Bitcoin vanity addresses, they do offer new and unconventional use cases for the cryptocurrency. Whether the future of Bitcoin vanity addresses is bright or not depends on the choices made by Bitcoin users.