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.
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.
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.
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.
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.
Related Terms
Mnemonic
→A sequence of words used to generate and recover a private key, typically 12 or 24 words long.
Wallet
→A tool that stores private keys and allows users to interact with blockchain networks.
Unspent Transaction Output (UTXO)
→A fundamental blockchain data structure representing unspent value that can be used in future transactions.
All terms and definitions may update as the Cryptionary improves.
