What are Hierarchical Deterministic (HD) Wallets?

If by any chance you have begun to delve into the world of crypto currency and you have gotten your first bitcoins, you will most certainly come to notice that your receiving address for the BTC usually tends to change over time. This, practically is all about appreciating you for having used a very powerful feature that is practically referred to the Wallets referred to as hierarchical deterministic, or in short, HD. Here, you will have a closer look at these Wallets referred to as hierarchical deterministic

Changing Addresses

A question that many people usually tend to ask whenever they are using the Ledger 比特币钱包 is “Why exactly has the address of my bitcoin changed? .Indeed bitcoin and some derivatives of bitcoin such as that of bitcoin cash and litecoin, usually use changing addresses. This is basically due to the fact that they are normally using an advanced featured referred to as Wallets referred to as hierarchical deterministic(HD).

Once you have used a certain bitcoin address to receive funds, a new address would most definitely be generated for you so that you can use it. These addresses are usually referred to as public keys and they are still governed by a single key pair. This practically means that any previous addresses that you have used are still completely usable and that you would not lose control of them. This is thus precisely where the famous expression of “ Not your keys, not your coins” comes from, thus means that if somebody else is in possession of your key they are effectively controlling all of your funds that you have in that account.

One Key Pair to Rule Them All

The key pair that usually governs all of your address is typically referred to as the extended key pair. This key pair usually consist of extended private key ( XPRIV ) and the Extended public key  ( XPUB) .The most essential of these two key pair would most probably be the extended private key ( XPRIV ). The reason being is due to the fact that this is the base from which all of your bitcoin addresses’ private key are usually derived from. To put it in other terms, the extended private key ( XPRIV ) is basically the master key to all of the private key that are belonging to an account. This practically also means that if any individual could possibly ever get their hands on your extended private  they could get access of all the crypto currency assets that are currently on your account

The Extended public key ( XPUB) is very much capable of instead of viewing the balance of all of your different addresses. For your optimal privacy, it is advisable that you do not share it. This the Extended public key ( XPUB)  and the extended private key ( XPRIV ) is only used in the crypto currencies that typically make use of the Wallets referred to as hierarchical deterministic ( HD ).


SIP Investment: Building Wealth One Step at a Time

SIP (Systematic Investment Plan) investment has gained significant popularity in recent years as a powerful tool for building wealth gradually and systematically. It offers individuals an opportunity to invest in a disciplined manner and achieve their long-term financial goals. This article explores the concept of SIP investment and how it can help individuals build wealth […]