Pay-to-Script Hash

A type of script and address that allows transfer of bitcoins to arbitrary complex scripts using a compact hash of that script. This results in much smaller transaction fees and less wait for the non-standard transaction to get into the blockchain. The actual script matching the hash must be provided by the payee when redeeming the funds. P2SH addresses are encoded in Base58Check as are regular public keys and begin with the number “3”.

Reference:

Malone, J.A (2015). Glossary of Bitcoin Terms and Definitions. United States: Lulu Press, Inc

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