B58 encoding is a method used to represent large integers in a more compact form. The technique uses a specific set of 58 alphanumeric characters, making it easier for humans to read and write the encoded data without risking confusion.

The character set excludes easily misinterpreted characters such as 0 (zero), O (capital o), I (capital i), and l (lowercase L). This reduces the chances of errors when copying or sharing codes. B58 is commonly used for wallet addresses and other identifiers. By converting long binary data into a shorter, more manageable format, it enhances user experience while maintaining sufficient uniqueness and security.

The encoding process involves mapping bytes to the 58-character set, followed by checksum addition to verify data integrity. When decoding, the process reverses to retrieve the original value. Overall, B58 encoding serves as a practical solution for representing large numerical values in a user-friendly manner, facilitating interactions within systems that require identification, like transactions and wallets.