Hierarchical Deterministic Wallet(HD Wallet)
A wallet that generates all private keys from a single seed phrase, enabling easy backup and address generation.
In-Depth Explanation
HD wallets use a master seed (typically 12-24 words) to derive unlimited addresses and keys using BIP-32/39/44 standards. One backup protects all current and future addresses. This simplified crypto UX significantly—no need to backup each key separately. The derivation path determines which addresses are generated, enabling multi-chain support from one seed.
Related Terms
Wallet
Software or hardware that stores private keys and enables users to send, receive, and manage cryptocurrency.
Seed Phrase
A sequence of 12-24 words that encodes a wallet's private keys, enabling backup and recovery.
Private Key
A secret cryptographic key that proves ownership and enables signing transactions for a blockchain address.
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