Hierarchical Deterministic Wallets

Created: 2020-11-15T16:23:05-06:00

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A set of algorithms where you take a single master key and create new keys from it.

Keys are able to create sub-keys of any kind they want, but keys above it can always re-create all of them.

So the master can create an offspring key, who can make further offspring keys, but posession of the master key allows you to re-create the chain of keys below it.

For example a server can give out public keys to sales servers who receive money in to wallets. Hacking the sales server does not expose keys to take money from the wallet. But the upstream distribution server could re-create it so someone can sweep the account.