Term

Derivation Path

The structured path notation (e.g., m/44'/0'/0'/0/0) used to derive keys and addresses from a hierarchical deterministic (HD) wallet seed.

Type:
wallet
security
Also known as:
HD path
1
concept

A derivation path defines how keys are deterministically derived from a seed in HD wallets per BIP-32/44/49/84 standards. It ensures consistent address generation across compatible wallets.

Example 1.1

The BIP44 path for Bitcoin is m/44'/0'/0'/0/0, while for Bitcoin Cash it's m/44'/145'/0'/0/0. Using the wrong path can make funds appear missing in a wallet until the correct path is selected.

2
safety

Always back up the seed phrase; derivation paths can be reconfigured, but the seed is the root of all keys. Avoid exposing extended public or private keys (xpub/xprv) unless necessary.

Example 2.1

Sharing an xpub with a third-party service allows it to see all derived addresses and balances, impacting privacy even if it can't spend your funds.

All terms and definitions may update as the Cryptionary improves.