How does HD wallet operate? | Bitcointalksearch.org

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Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

2 Is it a more stronger wallet than the one we all typically use?

There is no "more stronger wallet," if you have not generate your seeds randomly, you will lose your coins.
HD wallets give you dynamic and enhance your privacy by generating and managing multiple addresses and therefore you do not need to reuse you old addresses or a lot of headaches in keeping the private key for each address.

Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

When I was looking at bitcoin wallets to understand more. As a result of my discovery of Hierarchical Deterministic Wallets (HD wallets), I can see how all keys are generated from a single source using HD wallets. Now, I have a query: With the existence of other wallets, why do we utilize this HD wallet?
3 how does these HD wallets works. And what are the differences between extended keys and mnemonic seed?
I brought it up since I don't understand these. Thank you

This info-graphic will answer these questions:

odolvlobo

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Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

With the existence of other wallets, why do we utilize this HD wallet?
2 Is it a more stronger wallet than the one we all typically use?

The questions make no sense to me. What other wallets are you referring to? What is the wallet we all typically use? Perhaps you don't understand what a HD wallet is because nearly all wallets are HD wallets now.

ABCbits

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Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

Now, I have a query: With the existence of other wallets, why do we utilize this HD wallet?

You only need to backup HD wallet once to make sure you have access to your Bitcoin on various address. Before HD wallet exist, user have to backup their wallet file periodically since private key is generated randomly rather than on deterministic manner.

Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

2 Is it a more stronger wallet than the one we all typically use?

What exactly do you mean by stronger? Security wise, HD wallet which use non-hardened key has security concern where your Bitcoin (in that wallet) is compromised if the attacker manage to again your master public key and single child private key.

Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

3 how does these HD wallets works.

If you're looking for detailed technical answer, check BIP 32 at https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki.

Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

And what are the differences between extended keys and mnemonic seed?

In short,
1. mnemonic seed is used to generate HD wallet.
2. extended keys (along with other information) is used to generate child keys.

digaran

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Quote from: Dzwaafu11 on April 07, 2023, 05:42:32 AM

When I was looking at bitcoin wallets to understand more. As a result of my discovery of Hierarchical Deterministic Wallets (HD wallets), I can see how all keys are generated from a single source using HD wallets. Now, I have a query: With the existence of other wallets, why do we utilize this HD wallet?
2 Is it a more stronger wallet than the one we all typically use?
3 how does these HD wallets works. And what are the differences between extended keys and mnemonic seed?
I brought it up since I don't understand these. Thank you

It helps to speed up the work, you could generate 1000 private keys with a master key or seed, doesn't matter if you lose 500 of those keys, you could just use your seed to generate them again.

For example online wallets, exchanges use such wallets, if they give you a private key, it means they can regenerate that key by using a seed or a master key.

You could use a seed/mnemonic seed as your master seed, some wallets use the seed as an entropy source and the wallet can be encrypted with a password, some wallets allow you to carry only the seed instead of 1000 private keys, you could enter the seed into the same version of that wallet on another computer and regenerate all your keys.

I'm also confused because there are too many different wallets and each operate by their own standard.

Dzwaafu11

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When I was looking at bitcoin wallets to understand more. As a result of my discovery of Hierarchical Deterministic Wallets (HD wallets), I can see how all keys are generated from a single source using HD wallets. Now, I have a query: With the existence of other wallets, why do we utilize this HD wallet?
2 Is it a more stronger wallet than the one we all typically use?
3 how does these HD wallets works. And what are the differences between extended keys and mnemonic seed?
I brought it up since I don't understand these. Thank you

Topic: How does HD wallet operate? (Read 132 times)