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key is therefore displayed as 0, whereas the first hardened child (index 0x80000000) is displayed as 0’. In sequence then, the second hardened key would have index 0x80000001 and would be displayed as 1', and so on. When you see an HD wallet index i', that means 231+i. HD wallet key identifier (path) Keys in an HD wallet are identified using a “path” naming convention, with each level of the tree separated by a slash (/) character. Private keys derived from the master private key start with “m”. Public keys derived from the master public key start with “M”. There‐ fore, the first child private key of the master private key is m/0. The first child public key is M/0. The second grandchild of the first child is m/0/1 and so on. The “ancestry” of a key is read from right to left, until you reach the master key from which it was derived. For example, identifier m/x/y/z describes the key which is the z- th child of key m/x/y, which is the y-th child of key m/x, which is the x-th child of m. Table 4-8. HD wallet path examples m/0 The first (0) child private key from the master private key (m) m/0/0 The first grandchild private key of the first child (m/0) m/0'/0 The first normal grandchild of the first hardened child (m/0') m/1/0 The first grandchild private key of the second child (m/1) M/23/17/0/0 The first great-great-grandchild public key of the first great-grandchild of the 18th grandchild of the 24th child Navigating the HD wallet tree structure The HD wallet tree structure offers tremendous flexibility. Each parent extended key can have 4 billion children: 2 billion normal children and 2 billion hardened children. Each of those children can have another 4 billion children and so on. The tree can be as deep as you want, with an infinite number of generations. With all that flexibility, however, it becomes quite difficult to navigate this infinite tree. It is especially difficult to transfer HD wallets between implementations, because the possibilities for internal organization into branches and sub-branches are endless. Two Bitcoin Improvement Proposals (BIPs) offer a solution to this complexity, by cre‐ ating some proposed standards for the structure of HD wallet trees. BIP0043 proposes the use of the first hardened child index as a special identifier that signifies the “purpose” of the tree structure. Based on BIP0043, an HD wallet should use only one level-1 branch of the tree, with the index number identifying the structure and namespace of the rest of the tree by defining its purpose. For example, an HD wallet using only branch m/i'/, is intended to signify a specific purpose and that purpose is identified by index number “i”. 96 | Chapter 4: Keys, Addresses, WalletsPDF Image | Mastering Bitcoin
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