The importance of the Derivation path in your BCH wallet and in any other

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Avatar for MicroReylatos
3 years ago

An original article from estudiobitcoin and translated by me for you since I consider it very important that you know this information due as it is something very useful, and most people have trouble accessing their wallets when they try.

HD wallet

The derivation path in almost all cryptocurrencies is something that is typical of all wallets called HD (Hierarchical Deterministic) that have a structural model in their organization and always determine the same result.

These wallets have a software whose main function is to generate an infinite number of addresses and generate keys (mnemonics or the 12 recovery words) and the balance you have in it in any other wallet that is compatible. This allows you to access your coins easily. These keys are known by the name of seeds, and it is easier because you do not have to remember a long complex key of numbers and special symbols.

In summary, HD wallets are wallets that generally have 12 words that are human-readable and that allow you to have an unlimited number of addresses on any blockchain that is compatible with that type of wallet.

What is a path route?

It is the way to enter your address where your coins are using the 12 recovery words or seeds.

Going into more technical terms, most of the wallets use BIPS (means Bitcoin Improvement Proposal, they are proposals for improvements to the protocol that are being reviewed by developers that are open source among other things) that have the following characteristics:

BIP 32: m / 0 '/ 0/0 → (oldest)

BIP 44: m / 44 '/ 0' / 0 '/ 0/0 → Used for addresses named Legacy

BIP 49: m / 49 '/ 0' / 0 '/ 0/0 → Used for addresses named Segwit

BIP 84: m / 84 '/ 0' / 0 '/ 0/0 → Used for addresses named Native

In HD wallets there is a single phrase or seed of 12 words which are decoded through cryptographic algorithms and mathematical equations to be able to derive an infinite number of key pairs.

Great right?

If any of those words are changed, the private key that you get will be different, and you will not be able to access where you have your coins, so be very careful with this.

And that is why it is very important to have these words safeguarded, preferably written on paper, so that in case the phone is lost, the PC is damaged, or that for any other reason we cannot access our device, we can have access on any other device if we have these words.

Always remember to copy the derivation route and its seeds, because this way you can have access to your coins whenever and wherever you want. And they can also import your wallet to any other that is compatible.

I comment on this because I have seen many cases in which despite having all 12 keywords, people cannot access their coins, and this happens because they have not configured the derivation path correctly. Most wallets allow you to configure this.

I hope this information has been useful to you.

That's all for today.

We read in my next post!

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3 years ago

Comments

Thanks for this info, now I understand why it didn't work out before. I once tried to import a wallet, and despite inputting the 12 seed phase I couldn't recover my wallet.

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3 years ago

Glad to read that this help you! :)

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3 years ago

I definitely learned something. Thank you for translating the article. 👍

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3 years ago

I am very happy, it is useful information, and that is the main reason why I took the trouble to translate it :)

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3 years ago

Thank you for sharing. I have saved your article for future reference.

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3 years ago

It is very important that you save your derivation path, as that will allow you to regain access to your wallet in the future. I hope this post is useful for you.

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3 years ago

These things I learned through Bitcoin com.wallet.They provide me seed phrase and I saved.One day suddenly I lost my mobile.As I have written my seed phrase on a note-book through that I recovered my money.But I really don't know why they are 12 in number and initial number important.You updated my knowledge.Applause and Honor for you.

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3 years ago

It is important that you copy them in the same order, and that you also copy the derivation path, as that will help you in the future if you want to change wallets or have the same balance in different wallets.

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3 years ago

Wao,it means you can make your seed phrase as you want??

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3 years ago

Yes, you can create your own phrase if you wish and have your own personalized bch wallet or any other cryptocurrency, this is one of the genius that this technology offers.

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3 years ago