How Does a Wallet Derive Multiple Public Keys from a Single Seed Phrase? ▴ Learn

How Does a Wallet Derive Multiple Public Keys from a Single Seed Phrase?

Cryptocurrency wallets use a hierarchical deterministic (HD) key generation standard, often based on BIP-32 or BIP-39. The seed phrase is used to generate a single master seed.

This master seed is then deterministically used to generate a tree-like structure of private and public key pairs. Each new key is derived from the previous one in a predictable but irreversible manner.

This allows a user to back up their entire wallet with just the initial seed phrase.

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