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A child private key, the corresponding public key and the bitcoin address are all indistinguishable from keys and addresses created randomly. The fact that they are part of a sequence is not visible, outside of the HD wallet function that created them. Once created, they operate exactly as “normal” keys. Extended keys As we saw above, the key derivation function can be used to create children at any level of the tree, based on the three inputs: a key, a chain code and the index of the desired child. The two essential ingredients are the key and chain code and combined these are called an extended key. The term “extended key” could also be thought of as “extensible key” because such a key can be used to derive children. Extended keys are stored and represented simply as the concatenation of the 256 bit key and 256 bit chain code into a 512 bit sequence. There are two types of extended keys: An extended private key is the combination of a private key and chain code and can be used to derive child private keys (and from them, child public keys). An extended public key is a public key and chain code, which can be used to create child public keys, as described in “Generating a public key” on page 68. Think of an extended key as the root of a branch in the tree structure of the HD wallet. With the root of the branch, you can derive the rest of the branch. The extended private key can create a complete branch, whereas the extended public key can only create a branch of public keys. An extended key consists of a private or public key and chain code. An extended key can create children generating its own branch in the tree structure. Sharing an extended key gives access to the entire branch. Extended keys are encoded using Base58Check, to easily export and import between different BIP0032 compatible wallets. The Base58Check coding for extended keys uses a special version number that results in the prefix “xprv” and “xpub” when encoded in base 58 characters, to make them easily recognizable. Since the extended key is 512 or 513 bits, it is also much longer than other Base58Check encoded strings we have seen previously. Here’s an example of an extended private key, encoded in Base58Check: xprv9tyUQV64JT5qs3RSTJkXCWKMyUgoQp7F3hA1xzG6ZGu6u6Q9VMNjGr67Lctvy5P8oyaYAL9CAWrUE9i6GoNMKUga5biW6H Here’s the corresponding extended public key, also encoded in Base58Check: xpub67xpozcx8pe95XVuZLHXZeG6XWXHpGq6Qv5cmNfi7cS5mtjJ2tgypeQbBs2UAR6KECeeMVKZBPLrtJunSDMstweyLXhRgP 92 | Chapter 4: Keys, Addresses, WalletsPDF Image | Mastering Bitcoin
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