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Figure 4-10. Creating master keys and chain code from a root seed The root seed is input into the HMAC-SHA512 algorithm and the resulting hash is used to create a master private key (m) and a master chain code. The master private key (m) then generates a corresponding master public key (M), using the normal elliptic curve multiplication process m * G that we saw previously in this chapter. The chain code is used to introduce entropy in the function that creates child keys from parent keys, as we will see in the next section. Private child key derivation Hierarchical Deterministic wallets use a child key derivation (CKD) function to derive children keys from parent keys. The child key derivation functions are based on one-way hash functions that combines: • A parent private or public key (ECDSA uncompressed key) • A seed called a chain code (256 bits) • An index number (32 bits) The chain code is used to introduce seemingly random data to the process, so that the index is not sufficient to derive other child keys. Thus, having a child key does not make it possible to find its siblings, unless you also have the chain code. The initial chain code seed (at the root of the tree) is made from random data, while subsequent chain codes are derived from each parent chain code. These three items are combined and hashed to generate children keys, as follows: The parent public key, chain code and the index number are combined and hashed with the HMAC-SHA512 algorithm to produce a 512 bit hash. The resulting hash is split into two halfs. The right-half 256 bits of the hash output become the chain code for the 90 | Chapter 4: Keys, Addresses, WalletsPDF Image | Mastering Bitcoin
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