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docs: coin paths modifications (yup, it wasn't final)

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Tomas Susanka 2018-08-29 17:22:31 +02:00
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docs/coins/README.md
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# BIP-44 derivation paths # BIP-44 derivation paths
Each coin uses [BIP-44](https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki) derivation path scheme. If the coin supports normal derivation we use [BIP-32](https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki). If not (because the underlying curve does not support it for example) we're using Stellar's [SEP-0005](https://github.com/stellar/stellar-protocol/blob/master/ecosystem/sep-0005.md). In a nutshell, these paths are derived using [SLIP-0010](https://github.com/satoshilabs/slips/blob/master/slip-0010.md) and have only three-part BIP-44 path `44'/c'/a'`. Each coin uses [BIP-44](https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki) derivation path scheme. If the coin is UTXO-based the path should have all five parts, precisely as defined in [BIP-32](https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki). If it is account-based we follow Stellar's [SEP-0005](https://github.com/stellar/stellar-protocol/blob/master/ecosystem/sep-0005.md) - paths have only three parts `44'/c'/a'`. Unfortunately, lot of exceptions occur due to compatibility reasons.
## List of used derivation paths ## List of used derivation paths
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## Notes ## Notes
1. <a name="Ethereum"></a> We believe we should use `44'/60'/a'` for Ethereum, because it is account-based, rather than UTXO-based. Unfortunately, lot of Ethereum tools (MEW, Metamask) do not use such scheme and set `a = 0` and then iterate the address index `i`. Therefore for compatibility reasons we use the same scheme: `44'/60'/0'/0/i` and only the `i` is being iterated. 1. <a name="Ethereum"></a> We believe this should be `44'/60'/a'`, because Ethereum is account-based, rather than UTXO-based. Unfortunately, lot of Ethereum tools (MEW, Metamask) do not use such scheme and set `a = 0` and then iterate the address index `i`. Therefore for compatibility reasons we use the same scheme: `44'/60'/0'/0/i` and only the `i` is being iterated.
2. <a name="Ripple"></a> Similar to Ethereum this should be `44'/144'/a'`. But for compatibility with other HW vendors we use `44'/144'/a'/0/0`. 2. <a name="Ripple"></a> Similar to Ethereum this should be `44'/144'/a'`. But for compatibility with other HW vendors we use `44'/144'/a'/0/0`.
3. <a name="Cardano"></a> Which allows normal derivation on ed25519. 3. <a name="Cardano"></a> Which allows non-hardened derivation on ed25519.
4. <a name="NEM"></a> NEM's path should be `44'/60'/a'` as per SEP-0005, but we allow `44'/60'/a'/0'/0'` as well for compatibility reasons with NanoWallet. 4. <a name="NEM"></a> NEM's path should be `44'/60'/a'` as per SEP-0005, but we allow `44'/60'/a'/0'/0'` as well for compatibility reasons with NanoWallet.