Bitcoin Derivation Path.

Written by Marvellous Ibironike

A derivation path is a sequence of numbers and letters. Before we go further let’s give an insight into HD wallets.

HD WALLETS

HD wallets, short for Hierarchical Deterministic wallets, are a type of wallet that uses a single seed phrase, also known as a mnemonic phrase, to generate an entire tree of private keys and addresses.

The relation between HD wallets, mnemonics, and derivation paths is that the mnemonic phrase, also known as the seed phrase, is used to generate the entire tree of private keys and addresses in an HD wallet. The derivation path is used to determine the specific key for a particular address within the HD wallet. The seed phrase is used to recreate the private key for the wallet, and the derivation path is used to navigate to the specific key for a particular address.

Marvellous goes on to talk about derivation paths and how they help to organize and separate different accounts, addresses, or wallets here