Child Key Derivation [BIP 32]Child Key Derivation [BIP 32]

This is the third part of our discussion on HD wallets. We will cover Child Key Derivation}

Quick reminderQuick reminder

• In part 1 we started from a source of entropy and generated a seed.
• In part 2 we generated the master key from the seed

Actually in part 2 we generated 3 things from the seed:

• Master private key
• Master public key
• Chain code

Now, we’ll see how to derive child keys from parentsNow, we’ll see how to derive child keys from parents

Step 1Step 1

Step 2Step 2

Step 3Step 3

Step 4Step 4

Step 5Step 5

Stay tuned for a video series explaining HD wallets in detail in Decoding Bitcoin

(Sneak peek 🤫)