Any wallet that supports BIP48 inherently supports deterministic key sorting as per BIP67 so that all possible multi-signature addresses/scripts are derived from deterministically sorted public keys.

We define the following 6 levels in BIP32 path:

m / purpose' / coin_type' / account' / script_type' / change / address_index

h or ' in the path indicates that BIP32 hardened derivation is used.

Each level has a special meaning, described in the chapters below.

Purpose is a constant set to 48' following the BIP43 recommendation. It indicates that the subtree of this node is used according to this specification.

Hardened derivation is used at this level.

One master node (seed) can be used for multiple Bitcoin networks. Sharing the same space for various networks has some disadvantages.

Avoiding reusing addresses across networks and improving privacy issues.

Coin type 0 for mainnet and 1 for testnet.

Hardened derivation is used at this level.

This level splits the key space into independent user identities, following the BIP44 pattern, so the wallet never mixes the coins across different accounts.

Users can use these accounts to organize the funds in the same fashion as bank accounts; for donation purposes (where all addresses are considered public), for saving purposes, for common expenses etc.

Accounts are numbered from index 0 in sequentially increasing manner. This number is used as child index in BIP32 derivation.

Hardened derivation is used at this level.

This level splits the key space into two separate script_type(s). To provide forward compatibility for future script types this specification can be easily extended.

Currently the only script types covered by this BIP are Native Segwit (p2wsh) and Nested Segwit (p2sh-p2wsh).

The following path represents Nested Segwit (p2sh-p2wsh) mainnet, account 0: 1': Nested Segwit (p2sh-p2wsh) m/48'/0'/0'/1'</br>

The following path represents Native Segwit (p2wsh) mainnet, account 0: 2': Native Segwit (p2wsh) m/48'/0'/0'/2'</br>

The recommended default for wallets is pay to witness script hash m/48'/0'/0'/2'.

To add new script types submit a PR to this specification and include it in the list above: X': Future script type m/48'/0'/0'/X'</br>

Constant 0 is used for external chain and constant 1 for internal chain (also known as change addresses). 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.

Public derivation is used at this level.

Addresses are numbered from index 0 in sequentially increasing manner. This number is used as child index in BIP32 derivation.

Public derivation is used at this level.

network account script chain address path mainnet first p2wsh external first m / 48' / 0' / 0' / 2' / 0 / 0 mainnet first p2wsh external second m / 48' / 0' / 0' / 2' / 0 / 1 mainnet first p2wsh change first m / 48' / 0' / 0' / 2' / 1 / 0 mainnet first p2wsh change second m / 48' / 0' / 0' / 2' / 1 / 1 mainnet second p2wsh external first m / 48' / 0' / 1' / 2' / 0 / 0 mainnet second p2wsh external second m / 48' / 0' / 1' / 2' / 0 / 1 testnet first p2sh-p2wsh external first m / 48' / 1' / 0' / 1' / 0 / 0 testnet first p2wsh external second m / 48' / 1' / 0' / 2' / 0 / 1 testnet first p2wsh change first m / 48' / 1' / 0' / 2' / 1 / 0 testnet first p2wsh change second m / 48' / 1' / 0' / 2' / 1 / 1 testnet second p2wsh external first m / 48' / 1' / 1' / 2' / 0 / 0 testnet second p2wsh external second m / 48' / 1' / 1' / 2' / 0 / 1 testnet second p2wsh change first m / 48' / 1' / 1' / 2' / 1 / 0 testnet second p2wsh change second m / 48' / 1' / 1' / 2' / 1 / 1