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I would like to know why certain types are defined multiple times in different packages and whether that's suppose to dictate which types to use for on-chain code and which for off-chain code?

Example: Address type exists in the following packages:

Plutus.V1.Ledger.Address

Ledger.Address

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The second is just re-exporting. Using the imports of the form Ledger.Address will mean bumping versions wont require lots of edits of V1 to V2 . This may or may not be desirable. Depends on your context.

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