What is a Destination Tag/MEMO?
A Destination Tag/MEMO is an additional address feature necessary for identifying a transaction recipient beyond a wallet address.
Why is this needed?
For tokens like $IOST, most centralized exchanges use one address for all their clients. Therefore, a Tag/MEMO is used to determine what actual individual account a given transaction should be assigned and credited to.
Example: The address you send IOST to Binance (binanceiost) can be equated to an apartment building address. The Tag/MEMO identifies which specific apartment you live in, in the apartment building.
When is a Tag/MEMO not required?
The only exception to the requirement to include the destination tag is when sending to a privately controlled wallet account.
A private wallet is one which the individual fully controls (has custody of) both the public and private keys. Examples of $IOST private wallets include but are not limited to:
Note: Sometimes, the exchanges require the user to enter a MEMO/tag even when transferring the funds to a private wallet. In this case, you can fill the MEMO with a random word or number.
Examples
- If you are sending $IOST to Binance, you must input a correct MEMO.
- If both an address and a tag/memo are required, and you send funds without a MEMO or with an incorrect MEMO, your funds will not be credited to your account and might: 1. In the best case, get stuck in the exchange’s wallet; 2. End up credited to someone else’s balance; 3. be lost forever.
- If you are sending $IOST from Binance to a private/personal wallet, a MEMO is not necessary but may be required, however. In this case, you can fill the MEMO with a random word or number.
This article is an adaptation of Destination Tag/memo FAQ by Coinbase Help center.
About IOST
High fees and slower transaction times on the Ethereum network have left the door open for new solutions to emerge, and IOST is one such project that has been gaining traction since its mainnet launch in 2019.
Backed by major financial and VC firms such as Sequoia, Matrix, and ZhenFund, IOST is a pioneering decentralized, high-throughput, gas-efficient Proof-of-Believability-powered smart contract platform built to tackle the scalability trilemma once and for all. For this, the concluding ranking from China’s CCID ranked IOST as the best blockchain platform under Basic Technology, better than Ethereum, EOS, and every other smart-contracting platform evaluated by the agency. This is a testament to the quality and ability to roll out a better, innovative product and reflect our true desire to be the best in the sphere.
Being one of the public chain leaders in terms of adoption, performance, and utility, IOST remains committed to our mission to unleash the power of blockchain. IOST currently has the ever-expanding 500,000 community members in over 20 countries, over 400 nodes, a top staking economy, symbiotic relationships with corporations dotted worldwide.
If you would like to hang out with the IOST community on chat, social media, or to discuss product development, we have something for everyone:
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