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Your questions about cryptocurrency answered

Why does BIP44 use non-hardened paths at all?

Why does BIP44 use non-hardened paths at all?

Why is the internal chain not visible outside of the wallet if it uses public derivation?

External chain is used for addresses that are meant to be visible outside of the wallet (e.g. for receiving payments). Internal chain is used for addresses which are not meant to be visible outside of the wallet and is used for return transaction change.

What is bip44 standard?

Bitcoin Improvement Proposal (BIP) 44 defines the standard derivation path for wallets which generate Pay-to-Public-Key-Hash (P2PKH) addresses. BIP 44 also defines the prefixes to be used with associated extended keys.

Does Trezor use BIP39?

Trezor generates all keys from a 12 to 24 word mnemonic sequence and optionally a passphrase. The BIP39 standard describes the procedure to compute a 512-bit seed from this passphrase. From this seed, Trezor can create several master keys, one for each curve. It uses a process similar and compatible to BIP32.

What is hardened derivation?

Hardened derivation: A key derived using this method is not linkable to other keys in the hierarchy, except for keys derived from it using normal derivation (see next item). Essentially, this is a method for deriving keys, such that all keys derived in this method look like independent keys generated randomly.

How safe is Bip 39?

However, some of the data in a BIP39 phrase is not random, so the actual security of a 12-word BIP39 seed phrase is only 128 bits. This is approximately the same strength as all Bitcoin private keys, so most experts consider it to be sufficiently secure.

What is BIP39 and bip44?

BIP39 and 44, on the other hand, are a more recent form of standardization of a specific list of words (passphrase) for a given language. This standard also includes the process of transforming those words into a hexadecimal 512-bit SEED, which is the real SEED needed to generate the HD BIP32 wallet.

What if Trezor goes out of business?

Answer. Though Trezor has its own wallet software, fortunately — if ever Trezor’s company — SatoshiLabs, goes bankrupt and goes out of business, you can still use your Trezor hardware wallet to connect to other software wallets such as Electrum(for Bitcoin), or MetaMask(for Ethereum).

Can I use the same seed phrase for two wallets?

Yes, by using the same seed phrase (and derivation path), you can have multiple instances of the same wallet. A wallet does not ‘contain your bitcoin’, it just contains the keys that allow you to spend your bitcoin.

How secure is a 12 word seed?

A recovery phrase is usually generated from a specific list of 2,048 words. That means that your 12-word seed phrase has an iteration of 2,048 words. Therefore, it’s almost impossible that someone could successfully guess your seed phrase.

What is BIP32 path?

Address path (BIP32) defines how to derive private and public keys of a wallet from a binary master seed (m) and an ordered set of indices. BIP32 derivation path: m / 0′ / 0′ /k’ BIP32 extended private key represents the extended private key derived from the derivation path.

What hardened keys?

Hardened addresses prevent other private keys in the wallet from being exposed, limiting the scope of damage from an attack. If the private key corresponding to a regular non-hardened address were stolen along with the master public key of the wallet, the other private keys in a wallet could be stolen as well.

What is HD derivation path?

A derivation path is a piece of data which tells a Hierarchical Deterministic (HD) wallet how to derive a specific key within a tree of keys. Derivation paths are used as a Bitcoin standard and were introduced with HD wallets as a part of BIP 32.

How long does Trezor last?

1 Answer. Show activity on this post. It seems like the general consensus on how long the actual cryptographic chip in the Ledger and Trezor devices will last is ~20-30 years, comparable to a standard flash drive.

Can crypto hardware wallets fail?

Hardware wallets are the only thing you need to secure your Bitcoin, but that doesn’t mean they are a single point of failure should yours get lost, damaged or stolen. In this guide, we’ll cover how to make sure that a broken hardware wallet doesn’t spell the end of your hodl.

How long do ledgers last?

End of life. The battery is designed to last 5 years. Ledger does not provide a battery replacement program. If battery capacity has degraded beyond being practically usable, the device can be used by connecting it to a power source using the USB cable.

Can seed phrase be guessed?

However, Microsoft’s Swiftkey keyboard was able to predict the seed phrase right out of the box. The Samsung keyboard, too, can predict the words if “auto-replace” and “suggest text corrections” have been manually turned on.

Is 12 or 24 word seeds better?

It will take an attacker who is brute forcing your mnemonic exponentially longer to brute force a 24 word seed over a 12 word seed. A 24 word mnemonic is more secure than a 12 word mnemonic if the attack you are worried about is someone brute forcing your seed.

Can a seed phrase be hacked?

A seed phrase is an equivalent to a crypto private key; it’s a string of words that “unlock” the funds in a crypto wallet, allowing whoever owns the phrase to do with them whatever they please. “Plaintext” means that these phrases were sent over the internet unencrypted, making them an easy target for hackers.

Does ledger use BIP39?

Ledger uses a standard called BIP 39 for the generation and interpretation of the master seed on all of our devices. BIP 39 is an industry standard used by many other hierarchical deterministic wallets.

What is a BIP39 seed?

BIP39 is a design implementation that defines how cryptocurrency wallets produce the set of words (or “mnemonic codes”) that make up a mnemonic sentence, and how the wallet turns them into a binary “seed” that is used to create the encryption keys that are used to execute cryptocurrency transactions.

What is hierarchical deterministic wallet?

A hierarchical deterministic (HD) wallet is a digital wallet commonly used to store the digital keys for holders of cryptocurrencies such as Bitcoin and Ethereum. Anyone with a copy of both the public and password-like private key can control the cryptocurrency in the account.

What is bip84?

Bitcoin Improvement Proposal (BIP) 84 defines the standard derivation path for wallets which generate native SegWit (P2WPKH) addresses. BIP 84 also defines the prefixes to be used with associated extended keys.

What is BIP32 path?

Address path (BIP32) defines how to derive private and public keys of a wallet from a binary master seed (m) and an ordered set of indices. BIP32 derivation path: m / 0′ / 0′ /k’ BIP32 extended private key represents the extended private key derived from the derivation path.

What is P2WPKH?

Pay-to-Witness-Public-Key-Hash (P2WPKH) is a type of ScriptPubKey which is used to lock bitcoin to a SegWit address. A P2WPKH transaction is similar to a P2PKH transaction in most ways; it still locks bitcoin to the hash of a public key. The major difference is that P2WPKH uses SegWit.

What is HD derivation path?

A derivation path is a piece of data which tells a Hierarchical Deterministic (HD) wallet how to derive a specific key within a tree of keys. Derivation paths are used as a Bitcoin standard and were introduced with HD wallets as a part of BIP 32.

What derivation path does MetaMask use?

Presently MetaMask uses derivation path value to be m/44’/60’/0’/0 , which is technically only correct for Ethereum, and incorrect for RSK and other Ethereum-compatible networks. It does currently support custom derivation paths only for hardware wallets.

Is MetaMask a bip44?

When importing a Secret Recovery Phrase (seed phrase), MetaMask only supports the default BIP-44 derivation path (m/44’/60’/0’/0). For more information, see the technical specification here.

What derivation path does exodus use?

The derivation path is important as it sets the standard of how your public addresses and private keys are created. Basically, the derivation path is, like it sounds, the path to how your keys are derived. Exodus, for the most part, uses BIP-44, and SLIP-0044 as the registered coin types.

Is MetaMask an HD wallet?

MetaMask is the commonly used HD wallet to interact with the Ethereum blockchain. Let’s go ahead and understand HD keys based on creating a MetaMask Wallet using its browser extension. Detailed installation procedures and settings are omitted as we discuss steps related to key generation alone.

How does MetaMask get hacked?

They’ll be able to access your Metamask wallet after that, but they won’t be able to change your private key. Phishing and virus assaults, rather than direct hacks, are the most common ways that MetaMask wallets are hacked.

Is MetaMask a soft wallet?

MetaMask is a popular cryptocurrency wallet known for its ease of use, availability on both desktops and mobile devices, the ability to buy, send, and receive cryptocurrency from within the wallet, and collect non-fungible tokens (NFTs) across two blockchains.