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February 11, 2012Protocol & scalingResearch & proposalsdocumented

Deterministic wallets replace the key pile

BIP 32 let an entire wallet's keys be derived from a single seed value.

Before it, a wallet was an unstructured collection of private keys that had to be backed up again every time it generated a new one. Derivation also allowed public addresses to be produced by a system that cannot spend from them.