🎭Public Key vs Hash-based

While EVM addresses are only derivated from the public key, Substrate addresses are hash-based.

EVM (Ethereum)

Ethereum addresses are directly derived from the public key of an account.

The public key is hashed to produce the 20-byte address.

Substrate (Polkadot/Parachains)

Substrate employs a hash-based methodology for address generation, deriving the address from the public key through a cryptographic hash function.

Encoded addresses are composed of 58 alphanumeric characters, resulting in a more concise and recognizable format compared to hex-encoded addresses. SS58 addresses intentionally avoid characters like 0, O, I, and l to enhance readability within a string.

Moreover, addresses can incorporate network-specific prefixes, enabling the utilization of the same public key for deriving addresses across diverse chains. The flexibility extends further through the utilization of derivation paths, allowing the creation of multiple addresses from a single public key for distinct purposes. For instance, users can generate sub-accounts to segregate funds or perform specific transaction types.

Also, Substrate addresses are equipped with a checksum, serving as a validation mechanism to mitigate input errors.