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Merge pull request #137 from enderminh/develop

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Chapter 4: Proposed factual changes/fixes to keys section
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Andreas M. Antonopoulos 2014-09-24 14:40:53 -04:00
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@ -646,7 +646,7 @@ In simple terms, if you want to use the convenience of an extended public key to
===== Index numbers for normal and hardened derivation
The index number used in the derivation function is a 32-bit integer. To easily distinguish between keys derived through the normal derivation function versus keys derived through hardened derivation, this index number is split into two ranges. Index numbers between 0 and 2^31^ (0x0 to 0x80000000) are used _only_ for normal derivation. Index numbers between 2^31^ and 2^32^ (0x80000000 to 0x8FFFFFFF) are used _only_ for hardened derivation. Therefore, if the index number is less than 2^31^, that means the child is normal, whereas if the index number is above 2^31^, the child is hardened.
The index number used in the derivation function is a 32-bit integer. To easily distinguish between keys derived through the normal derivation function versus keys derived through hardened derivation, this index number is split into two ranges. Index numbers between 0 and 2^31^-1 (0x0 to 0x7FFFFFFF) are used _only_ for normal derivation. Index numbers between 2^31^ and 2^32^-1 (0x80000000 to 0xFFFFFFFF) are used _only_ for hardened derivation. Therefore, if the index number is less than 2^31^, that means the child is normal, whereas if the index number is equal or above 2^31^, the child is hardened.
To make the index number easier to read and display, the index number for hardened children is displayed starting from zero, but with a prime symbol. The first normal child key is therefore displayed as 0, whereas the first hardened child (index 0x80000000) is displayed as 0'. In sequence then, the second hardened key would have index 0x80000001 and would be displayed as 1', and so on. When you see an HD wallet index i', that means 2^31^+i.
@ -687,7 +687,7 @@ On the fourth level "change", an HD wallet has two sub-trees, one for creating r
|=======
| M/44'/0'/0'/0/2 | The third receiving public key for the primary bitcoin account
| M/44'/0'/3'/1/14 | The fifteenth change-address public key for the fourth bitcoin account
| m/44'/2'/0'/0/1 | The first private key in the Litecoin main account, for signing transactions
| m/44'/2'/0'/0/1 | The second private key in the Litecoin main account, for signing transactions
|=======
===== Experimenting with HD wallets using sx-tools