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.
Glossar
Single Seed
Entropy ⎊ The fundamental randomness source used in cryptographic operations, where a single seed represents the entire private key space for a wallet.
Seed
Genesis ⎊ A seed in cryptocurrency contexts typically denotes the initial state or foundational elements of a blockchain or decentralized application, representing the origin point for subsequent transactions and data structures.
Master Seed
Secrecy ⎊ This is the single, high-entropy value from which all private keys for wallets and smart contract interactions are deterministically generated.
Seed Phrase
Genesis ⎊ Within the context of cryptocurrency, options trading, and financial derivatives, a seed phrase represents the cryptographic bedrock underpinning wallet security and asset control.
Public Keys
Role ⎊ Public Keys serve a foundational role in asymmetric cryptography, acting as the publicly shared component of a key pair used to receive funds and verify digital signatures on a blockchain.