More Examples

“The BIP 0032 standard for Hierarchical Deterministic Wallets is used by all good wallets.”

“My deterministic wallet uses a 24-word private key.”

“With a deterministic wallet a single key can be used to generate an entire tree of key pairs.”

Definition(s) from the Web

  1. 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. Source
  2. Deterministic wallets implemented by hardware wallets ([such as] Trezor Wallet) keep the generated private keys offline and do not expose them to the computer even when spending coins. Source
  3. With a deterministic wallet a single key can be used to generate an entire tree of key pairs. This single key serves as the root of the tree. The generated mnemonic sentence or word seed is simply a more human-readable way of expressing the key used as the root, as it can be algorithmically converted into the root private key. Those words, in that order, will always generate exactly the same root key. A word phrase could consist of 24 words like: begin friend black earth beauty praise pride refuse horror believe relief gospel end destroy champion build better awesome. That single root key is not replacing all other private keys, but rather is being used to generate them. All the addresses still have different private keys, but they can all be restored by that single root key. The private keys to every address it has and will ever give out in the future can be recalculated given the root key. That root key, in turn, can be recalculated by feeding in the word seed. The mnemonic sentence is the backup of the wallet. If a wallet supports the same (mnemonic sentence) technique, then the backup can also be restored on another software or hardware wallet. A mnemonic sentence is considered secure. The BIP-39 standard creates a 512-bit seed from any given mnemonic. The set of possible wallets is 2512. Every passphrase leads to a valid wallet. If the wallet was not previously used it will be empty. Source

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