Deterministic Wallet
A wallet that derives all keys and addresses from a single seed phrase, enabling easy backup and recovery.
Deterministic wallets (HD wallets) use a single seed phrase to derive a tree of private/public keys and addresses. Standards like BIP-32/39/44 make wallets interoperable and recoverable across devices.
If your phone is lost, you can restore all your Bitcoin Cash addresses and balances by entering your 12-word seed into a compatible wallet that uses the same derivation path.
Benefits include simplified backups, organized accounts, and improved privacy through address rotation. Risks include seed compromise and poor storage hygiene.
Writing your seed on paper and storing it securely offline protects against malware theft, but consider metal backups to guard against fire or water damage.
Related Terms
Mnemonic
→A sequence of words used to generate and recover a private key, typically 12 or 24 words long.
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.
Wallet
→A tool that stores private keys and allows users to interact with blockchain networks.
All terms and definitions may update as the Cryptionary improves.
