The beneficiary VASP generates a Travel Address. It is a string of alphanumeric digits that, when decoded, provide information on the linked account, such as:
- To which VASP the coins are to be sent,
- Where the FATF Travel Rule information needs to go.
Where with a plain crypto asset address the VASP needs to ask all known counterparty VASP if they own this particular address, the Travel Address immediately makes this clear. Thus saving the user and the VASP time and effort. It also does not leak competitively sensitive information to counterparties.
A wallet address is, in a way, like a bank account number in that it can be shared publicly without compromising the assets inside the wallet. Wallet addresses are what blockchains use to keep track of the allocation of assets and transaction chains.
For every virtual asset account created, a private key is generated, and this private key generates a public key which finally generates a Wallet Address. The private key should never be shared since it acts similarly to a pin code in traditional banking. The wallet address generated from the public key can be shared without compromising your funds.