Exploring HD Wallets: Everything You Need to Know about BIP-32 and BIP-39

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Written by Abubakar Sadiq Ismail

Wallets are where private keys, public keys and addresses are kept securely. To generate bitcoin addresses or use a saved private key to sign a transaction in order to spend an unspent transaction output(UTXO).

Generally reusing one address to receive bitcoin is bad for privacy in the network, bitcoin transactions are not anonymous but pseudonymous hence using one address can lead to the linking of transactions to a particular pseudonym and that pseudonym can be tracked.

Before the bip32 proposal which we will get to later, wallets generate hundreds of private keys, which will be used to generate public keys and bitcoin addresses to avoid address reuse, backing up these keys is not easy and can sometimes be difficult.

Abubakar continues to share in-depth technical knowledge about BIP-32 & BIP-39 wallets, get the full details here; https://sadeeqcode.medium.com/hd-wallets-bip-32-and-bip39-ccc25a170b89