Deterministic Wallet
A wallet that derives all keys and addresses from a single seed phrase, enabling easy backup and recovery.
- Also known as
- HD walletHierarchical Deterministic Wallet
Deterministic wallets, often called HD wallets, use one seed phrase to derive a tree of private keys, public keys, and addresses. Standards like BIP-32, BIP-39, and BIP-44 make recovery predictable across compatible software.
Benefits include simplified backups, organized accounts, watch-only xpubs, and improved privacy through address rotation. The main risk is that anyone who obtains the seed can recreate and spend from the wallet.
Related terms
3 linkedExplore connected entries beyond the alphabetical index.
Mnemonic
→A sequence of words used to generate and recover a private key, typically 12 or 24 words long.
Derivation Path
→A derivation path is the structured notation wallets use to derive specific keys and addresses from an HD wallet seed.
Wallet
→Software or hardware that manages crypto keys, creates addresses, signs transactions, and shows blockchain activity.
All terms and definitions may update as the Cryptionary improves.
