Deterministic wallet - Revision history

Pancyrus at 17:04, 27 July 2023

2023-07-27T17:04:01Z

← Older revision		Revision as of 17:04, 27 July 2023
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	===Armory deterministic wallet===		===Armory deterministic wallet===
	[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code". Earlier versions of Armory required backing up both the "root key" and "chaincode", while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in ~~favor~~ of the standard BIP0032 format.<ref>https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818</ref>		[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code". Earlier versions of Armory required backing up both the "root key" and "chaincode", while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in favour of the standard BIP0032 format.<ref>https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818</ref>

	== References ==		== References ==

Pancyrus: Moved the references to a references section and formatted them appropriately.

2021-07-19T23:52:21Z

Moved the references to a references section and formatted them appropriately.

← Older revision		Revision as of 23:52, 19 July 2021
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	===Type 2: Hierarchical deterministic wallet===		===Type 2: Hierarchical deterministic wallet===
	This wallet type is described in [[BIP 0032]] and is fully implemented in [[TREZOR]], [[Electrum]] and [[CarbonWallet]]. The seed is a random 128-bit value presented to the user as a 12-word seed phrase using common English words. The seed is used after 100,000 rounds of SHA256 to slow down attacks against weak user-chosen strings. [https://bitcointalk.org/index.php?topic=330672.msg3547258#msg3547258]		This wallet type is described in [[BIP 0032]] and is fully implemented in [[TREZOR]], [[Electrum]] and [[CarbonWallet]]. The seed is a random 128-bit value presented to the user as a 12-word seed phrase using common English words. The seed is used after 100,000 rounds of SHA256 to slow down attacks against weak user-chosen strings.<ref>https://bitcointalk.org/index.php?topic=330672.msg3547258#msg3547258</ref>

	The initial description and workings of this wallet type is credited to Gregory Maxwell. [https://bitcointalk.org/index.php?topic=19137.msg239768#msg239768]		The initial description and workings of this wallet type is credited to Gregory Maxwell.<ref>https://bitcointalk.org/index.php?topic=19137.msg239768#msg239768</ref>

	===Armory deterministic wallet===		===Armory deterministic wallet===
	[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code". Earlier versions of Armory required backing up both the "root key" and "chaincode", while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in favor of the standard BIP0032 format. [https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818]		[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code". Earlier versions of Armory required backing up both the "root key" and "chaincode", while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in favor of the standard BIP0032 format.<ref>https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818</ref>

			== References ==
			<references />

	== See also ==		== See also ==

Pancyrus: Fixed some formatting and grammatical issues.

2021-07-19T23:49:10Z

Fixed some formatting and grammatical issues.

← Older revision		Revision as of 23:49, 19 July 2021
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	A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key. Seeds are typically serialized into human-readable words in a [[~~Seed~~ phrase]]. The [[BIP 0032]] standard for ~~Hierarchical Deterministic Wallets~~ is used by all good wallets as of 2019.		A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key. Seeds are typically serialized into human-readable words in a [[seed phrase]]. The [[BIP 0032]] standard for hierarchical deterministic wallets is used by all good wallets as of 2019.

	== Benefits ==		== Benefits ==
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	==Types==		==Types==

	===Type 1 ~~deterministic~~ wallet===		===Type 1: Deterministic wallet===
	A type 1 deterministic wallet is a simple method of generating addresses from a known starting string, as such it does not allow advanced features such as a Master Public Key. To generate a private key take SHA256(string + n), where n is an ASCII-coded number that starts from 1 and increments as additional keys are needed.		A type 1 deterministic wallet is a simple method of generating addresses from a known starting string, as such it does not allow advanced features such as a Master Public Key. To generate a private key take SHA256(string + ''n''), where ''n'' is an ASCII-coded number that starts from 1 and increments as additional keys are needed.

	This type of wallet can be created by Casascius Bitcoin Address Utility.		This type of wallet can be created by Casascius Bitcoin Address Utility.

	===Type 2 ~~hierarchical~~ deterministic wallet===		===Type 2: Hierarchical deterministic wallet===
	This wallet type is described in [[BIP 0032]] and is fully implemented in [[TREZOR]], [[Electrum]] and [[CarbonWallet]]. The seed is a random 128 bit value presented to the user as a 12 word seed phrase using common English words. The seed is used after 100,000 rounds of SHA256 to slow down attacks against weak user-chosen strings. [https://bitcointalk.org/index.php?topic=330672.msg3547258#msg3547258].		This wallet type is described in [[BIP 0032]] and is fully implemented in [[TREZOR]], [[Electrum]] and [[CarbonWallet]]. The seed is a random 128-bit value presented to the user as a 12-word seed phrase using common English words. The seed is used after 100,000 rounds of SHA256 to slow down attacks against weak user-chosen strings. [https://bitcointalk.org/index.php?topic=330672.msg3547258#msg3547258]

	The initial description and workings of this wallet type is credited to Gregory Maxwell. [https://bitcointalk.org/index.php?topic=19137.msg239768#msg239768]		The initial description and workings of this wallet type is credited to Gregory Maxwell. [https://bitcointalk.org/index.php?topic=19137.msg239768#msg239768]

	===Armory deterministic wallet===		===Armory deterministic wallet===
	[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code." Earlier versions of Armory required backing up both the "root key" and "chaincode," while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in favor of the standard BIP0032 format. [https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818]		[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code". Earlier versions of Armory required backing up both the "root key" and "chaincode", while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in favor of the standard BIP0032 format. [https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818]

	== See ~~Also~~ ==		== See also ==

	* [[Seed phrase]]		* [[Seed phrase]]
	* [[~~BIP_0032~~]]		* [[BIP 0032]]
	* [[~~Deterministic_wallet_tools\|~~Deterministic ~~Wallet Tools~~]]		* [[Deterministic wallet tools]]

	[[Category:Technical]]		[[Category:Technical]]
	[[Category:Wallets\| ]]		[[Category:Wallets\| ]]

Furunodo:

2020-06-06T09:19:52Z

← Older revision		Revision as of 09:19, 6 June 2020
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	[[Category:Technical]]		[[Category:Technical]]
	[[Category:Wallets]]		[[Category:Wallets\| ]]

Furunodo: Category:Wallets

2020-06-06T09:16:19Z

Category:Wallets

← Older revision		Revision as of 09:16, 6 June 2020
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	[[Category:Technical]]		[[Category:Technical]]
			[[Category:Wallets]]

Belcher: Add headers to organise the sections and bring attention to master public keys

2019-11-12T16:53:50Z

Add headers to organise the sections and bring attention to master public keys

← Older revision		Revision as of 16:53, 12 November 2019
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	Early clients such as the [[Satoshi client]] generate a buffer of fresh random private keys to be used as receiving and [[change\|change addresses]] in the future. This has the effect of invalidating backups after a short period when the keypool buffer (typically 100 addresses) is exhausted. Deterministic wallets can generate an unlimited number of addresses on the fly and as such don't suffer from this issue. As the addresses are generated in a known fashion rather than randomly some clients can be used on multiple devices without the risk of losing funds. Users can conveniently create a single backup of the seed in a human readable format that will last the life of the wallet, without the worry of this backup becoming stale.		Early clients such as the [[Satoshi client]] generate a buffer of fresh random private keys to be used as receiving and [[change\|change addresses]] in the future. This has the effect of invalidating backups after a short period when the keypool buffer (typically 100 addresses) is exhausted. Deterministic wallets can generate an unlimited number of addresses on the fly and as such don't suffer from this issue. As the addresses are generated in a known fashion rather than randomly some clients can be used on multiple devices without the risk of losing funds. Users can conveniently create a single backup of the seed in a human readable format that will last the life of the wallet, without the worry of this backup becoming stale.

	Certain types of deterministic wallet (BIP0032, Armory, [[Coinkite]] and [https://coinb.in/#newHDaddress Coinb.in] ) additionally allow for the complete separation of private and public key creation for greater security and convenience. In this model a server can be set up to only know the Master Public Key of a particular deterministic wallet. This allows the server to create as many public keys as is necessary for receiving funds, but a compromise of the MPK will not allow an attacker to spend from the wallet. They can alternatively be used in [[Electrum]] and [[Armory]] to enable completely offline storage and spending, where an offline computer knows the private key and an online one knows only the MPK. Transactions spending coins are ferried between the two computers via USB storage which avoids exposing the offline computer to a network-based attack.		=== Master public key ===

			Certain types of deterministic wallet (BIP0032, Armory, [[Coinkite]] and [https://coinb.in/#newHDaddress Coinb.in] ) additionally allow for the complete separation of private and public key creation for greater security and convenience. In this model a server can be set up to only know the Master Public Key (MPK) of a particular deterministic wallet. This allows the server to create as many public keys as is necessary for receiving funds, but a compromise of the MPK will not allow an attacker to spend from the wallet. They can alternatively be used in [[Electrum]] and [[Armory]] to enable completely offline storage and spending, where an offline computer knows the private key and an online one knows only the MPK. Transactions spending coins are ferried between the two computers via USB storage which avoids exposing the offline computer to a network-based attack.

	Deterministic wallets implemented by hardware wallets ([[TREZOR]]) keep the generated private keys offline and do not expose them to the computer even when spending coins.		Deterministic wallets implemented by hardware wallets ([[TREZOR]]) keep the generated private keys offline and do not expose them to the computer even when spending coins.

Belcher: Add link to bip32

2019-02-20T17:57:13Z

Add link to bip32

← Older revision		Revision as of 17:57, 20 February 2019
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	A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key. Seeds are typically serialized into human-readable words in a [[Seed phrase]].		A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key. Seeds are typically serialized into human-readable words in a [[Seed phrase]]. The [[BIP 0032]] standard for Hierarchical Deterministic Wallets is used by all good wallets as of 2019.

	== Benefits ==		== Benefits ==
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	* [[Seed phrase]]		* [[Seed phrase]]
			* [[BIP_0032]]
	* [[Deterministic_wallet_tools\|Deterministic Wallet Tools]]		* [[Deterministic_wallet_tools\|Deterministic Wallet Tools]]

	[[Category:Technical]]		[[Category:Technical]]

Belcher: renamed all mnemonic phrase to seed phrase

2018-07-17T12:02:13Z

renamed all mnemonic phrase to seed phrase

← Older revision		Revision as of 12:02, 17 July 2018
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	A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key. Seeds are typically serialized into human-readable words in a [[~~Mnemonic~~ phrase]].		A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key. Seeds are typically serialized into human-readable words in a [[Seed phrase]].

	== Benefits ==		== Benefits ==
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	===Type 2 hierarchical deterministic wallet===		===Type 2 hierarchical deterministic wallet===
	This wallet type is described in [[BIP 0032]] and is fully implemented in [[TREZOR]], [[Electrum]] and [[CarbonWallet]]. The seed is a random 128 bit value presented to the user as a 12 word ~~mnemonic~~ using common English words. The seed is used after 100,000 rounds of SHA256 to slow down attacks against weak user-chosen strings. [https://bitcointalk.org/index.php?topic=330672.msg3547258#msg3547258].		This wallet type is described in [[BIP 0032]] and is fully implemented in [[TREZOR]], [[Electrum]] and [[CarbonWallet]]. The seed is a random 128 bit value presented to the user as a 12 word seed phrase using common English words. The seed is used after 100,000 rounds of SHA256 to slow down attacks against weak user-chosen strings. [https://bitcointalk.org/index.php?topic=330672.msg3547258#msg3547258].

	The initial description and workings of this wallet type is credited to Gregory Maxwell. [https://bitcointalk.org/index.php?topic=19137.msg239768#msg239768]		The initial description and workings of this wallet type is credited to Gregory Maxwell. [https://bitcointalk.org/index.php?topic=19137.msg239768#msg239768]
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	== See Also ==		== See Also ==

	* [[~~Mnemonic~~ phrase]]		* [[Seed phrase]]
	* [[Deterministic_wallet_tools\|Deterministic Wallet Tools]]		* [[Deterministic_wallet_tools\|Deterministic Wallet Tools]]

	[[Category:Technical]]		[[Category:Technical]]

Belcher: added to catagory technical

2017-12-11T01:19:48Z

added to catagory technical

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	* [[Mnemonic phrase]]		* [[Mnemonic phrase]]
	* [[Deterministic_wallet_tools\|Deterministic Wallet Tools]]		* [[Deterministic_wallet_tools\|Deterministic Wallet Tools]]

			[[Category:Technical]]

Belcher: added link to mnemonic phrase article

2017-08-13T19:35:50Z

added link to mnemonic phrase article

← Older revision		Revision as of 19:35, 13 August 2017
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	A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key.		A deterministic wallet is a system of deriving keys from a single starting point known as a seed. The seed allows a user to easily back up and restore a wallet without needing any other information and can in some cases allow the creation of public addresses without the knowledge of the private key. Seeds are typically serialized into human-readable words in a [[Mnemonic phrase]].

	~~See also:~~ [[~~Deterministic_wallet_tools\|Deterministic Wallet Tools~~]]

	== Benefits ==		== Benefits ==
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	===Armory deterministic wallet===		===Armory deterministic wallet===
	[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code." Earlier versions of Armory required backing up both the "root key" and "chaincode," while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in favor of the standard BIP0032 format. [https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818]		[[Armory]] has its own Type-2 deterministic wallet format based on a "root key" and a "chain code." Earlier versions of Armory required backing up both the "root key" and "chaincode," while newer versions start deriving the chaincode from the private key in a non-reversible way. These newer Armory wallets (0.89+) only require the single, 256-bit root key. This older format is intended to be phased out in favor of the standard BIP0032 format. [https://bitcointalk.org/index.php?topic=351099.msg3770818#msg3770818]

			== See Also ==

			* [[Mnemonic phrase]]
			* [[Deterministic_wallet_tools\|Deterministic Wallet Tools]]