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Deterministic Wallet

1 min read
Pronunciation
[de-tur-muh-nis-tik woll-it]
Analogy
A deterministic wallet is like a tree from one seed—you can regrow all branches (keys) from the original seed.
Definition
A wallet that derives all private keys from a single master seed, allowing full wallet recovery from that seed.
Key Points Intro
Deterministic wallets simplify backup via:
Key Points

Single seed: One backup secures all addresses.

HD structure: BIP‑32 hierarchical derivation.

Unlimited keys: Generate new addresses on demand.

Interoperability: Standard seeds usable across wallets.

Example
A BIP‑39 seed phrase restores all Bitcoin and Ethereum addresses in compatible wallets.
Technical Deep Dive
Master seed derived from mnemonic via PBKDF2. BIP‑32 uses HMAC‑SHA512 with seed to derive master private key and chain code. Child keys derived via CKD functions along derivation paths.
Security Warning
Seed phrase compromise yields all keys; protect seed offline.
Caveat
Deterministic structure can link addresses if derivation path discovered.
Related Terms
Derivation Path
Seed Phrase
Brain Wallet

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