How to generate P2PKH address?

Crafting a P2PKH (Pay-to-Public-Key-Hash) address commences with the application of cryptographic hash functions. These functions, SHA-256 and RIPEMD-160, are employed sequentially to transform a single public key.

The initial step involves hashing the public key using SHA-256, a widely-recognized hashing algorithm known for its security and resistance to collisions. This process outputs a fixed-length hash value, which serves as input for the subsequent step.

Following SHA-256 hashing, the resulting hash is then subjected to RIPEMD-160, another robust hashing algorithm. RIPEMD-160 further condenses the data, producing a shorter and more manageable hash output.

The dual hashing process significantly reduces the size of the original public key, enabling efficient storage and transmission. This reduction in data size is crucial in the context of blockchain technology, where every byte counts.

The diminished size of the hashed public key not only conserves valuable block space but also contributes to minimizing transaction fees. As blockchain networks often charge fees based on data size, a smaller address translates into cost savings for the user.