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Derivation Path

wallet · security

A notation that selects a branch and key within a hierarchical deterministic wallet.

Also known as
HD path
1.general

A derivation path identifies positions in a hierarchical deterministic key tree. Wallet standards use path segments for purposes such as script type, coin type, account, external or change branch, and address index.

2.compatibility

The same recovery words can show different accounts when wallets use different passphrases, derivation paths, script types, or gap limits. Before migrating, record the wallet software, network, address format, path, and any passphrase, then test recovery without moving the only copy of funds.

3.privacy

An extended public key can reveal a whole branch of addresses and balances even though it cannot normally sign. Share xpubs only when the monitoring need outweighs that privacy exposure, and never expose an extended private key.

Related terms

All terms and definitions may update as the Cryptionary improves.