Glossary - ChicksX

Hierarchical Deterministic (HD) Wallet is a type of cryptocurrency wallet that generates a tree of keys from a single seed.

Hierarchical Deterministic (HD) Wallet is a type of cryptocurrency wallet that generates multiple keys from a single seed phrase. This allows users to manage numerous accounts or addresses with just one backup. Each key is derived from the previous one, enabling users to create an entire hierarchy of keys. This structure enhances security and convenience, as only the initial seed phrase needs to be securely stored. HD wallets are compatible with the BIP32 standard, which ensures interoperability across different wallet software that supports HD technology.