What are hierarchical deterministic (HD) crypto wallets?

What are hierarchical deterministic (HD) crypto wallets?


A hierarchical deterministic wallet generates public and private keys from a master key, allowing users to create a new wallet and retrieve all addresses and keys, given that they have access to the seed. On the contrary, non-deterministic wallets randomly generate wallet addresses and private keys, restricting users’ ability to recover addresses and keys if the wallet’s details are lost.

Typically, digital signatures and pairs of private and public signing keys are used in blockchain-based cryptocurrencies. That said, users spend their money by signing a transaction with the private key, and other users (recipients) can use the public key to confirm the signature’s validity. Private keys can be used to generate public keys, but not the other way around.

For instance, a user’s Bitcoin wallet

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