SHA-256 is used to verify wallet addresses through a process called "address verification" or "address validation". Here's how it works:

1. _Address input_: A user inputs a wallet address to send funds to.

2. _SHA-256 hashing_: The input address is hashed using SHA-256, producing a fixed-size string of characters (256 bits).

3. _Hash comparison_: The resulting hash is compared to a stored hash or a hash generated from a known valid address.

4. _Address verification_: If the hashes match, the address is considered valid, and the funds are sent to the correct address.

Address verification using SHA-256 ensures:

1. _Accuracy_: Funds are sent to the intended address, reducing errors and minimizing losses.

2. _Security_: SHA-256's cryptographic properties make it difficult for an attacker to manipulate the address or hash, ensuring the integrity of the transaction.

3. _Efficiency_: Verifying addresses using SHA-256 is faster and more efficient than other methods, reducing transaction processing times.

By using SHA-256 for address verification, cryptocurrency wallets and exchanges can ensure secure, accurate, and efficient transactions, protecting users' funds and preventing fraud.