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judymcconville@roadrunner.com 2017-04-28 12:22:23 -07:00
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@ -55,7 +55,7 @@ image::images/mbc2_0502.png["Deterministic Wallet"]
[[hd_wallets]]
==== Hierarchical Deterministic Wallets (BIP-32/BIP-44)
Deterministic wallets were developed to make it easy to derive many keys from a single "seed." The most advanced form of deterministic wallets is the _hierarchical deterministic wallet_ or _HD wallet_ defined by the BIP-32 standard. Hierarchical deterministic wallets contain keys derived in a tree structure, such that a parent key can derive a sequence of children keys, each of which can derive a sequence of grandchildren keys, and so on, to an infinite depth. This tree structure is illustrated in <<Type2_wallet>>.
((("wallets", "technology overview", "hierarchical deterministic (HD) wallets")))((("hierarchical deterministic (HD) wallets")))((("bitcoin improvement proposals", "Hierarchical Deterministic Wallets (BIP-32/BIP-44)")))Deterministic wallets were developed to make it easy to derive many keys from a single "seed." The most advanced form of deterministic wallets is the _hierarchical deterministic wallet_ or _HD wallet_ defined by the BIP-32 standard. Hierarchical deterministic wallets contain keys derived in a tree structure, such that a parent key can derive a sequence of children keys, each of which can derive a sequence of grandchildren keys, and so on, to an infinite depth. This tree structure is illustrated in <<Type2_wallet>>.
[[Type2_wallet]]
.Type-2 hierarchical deterministic wallet: a tree of keys generated from a single seed
@ -67,7 +67,7 @@ The second advantage of HD wallets is that users can create a sequence of public
==== Seeds and Mnemonic Codes (BIP-39)
Hierarchical deterministic wallets are a very powerful mechanism for managing many keys and addresses. They are even more useful if they are combined with a standardized way of creating seeds from a sequence of English words that are easy to transcribe, export, and import across wallets. This is known as a _mnemonic_ and the standard is defined by BIP-39. Today, most bitcoin wallets (as well as wallets for other cryptocurrencies) use this standard and can import and export seeds for backup and recovery using interoperable mnemonics.
((("wallets", "technology overview", "seeds and mnemonic codes")))((("mnemonic code words")))Hierarchical deterministic wallets are a very powerful mechanism for managing many keys and addresses. They are even more useful if they are combined with a standardized way of creating seeds from a sequence of English words that are easy to transcribe, export, and import across wallets. This is known as a _mnemonic_ and the standard is defined by BIP-39. Today, most bitcoin wallets (as well as wallets for other cryptocurrencies) use this standard and can import and export seeds for backup and recovery using interoperable mnemonics.
Let's look at this from a practical perspective. Which of the following seeds is easier to transcribe, record on paper, read without error, export, and import into another wallet?