HD wallets offer multi currency support adding the benefit to account recovery and enhancing security and privacy.
HD wallets were made as a Bitcoin standard with BIP 32 and it can be backed up by storing a single seed of 64 bytes.
A hierarchical deterministic wallet is a digital wallet used to store the digital keys for holders of cryptocurrencies such as Bitcoin or Etherum. A hierarchical deterministic (HD) wallet generates a new key pair at every new time of crypto transaction. This new key is generated from the master key pair.
It’s hierarchical structure is like a tree. The child keys are derived from a single master key. Each child key is defined by its path which contains its full information because it resides in its tree structure.
Intelligent HD Wallet Structure
Every master key produces same set of keys with deviated paths. This allows users to backup a single seed instead of hundreds of keys. Thus user can use parent public key instead of using the private key. Seed
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