Cryptocurrency Q&A
What derivation path scheme does a coin use?
What derivation path scheme does a coin use?
BlockchainLegend
Wed Jul 10 2024
|
5 answers
1232
In the realm of cryptocurrencies and digital finance, understanding the derivation path scheme of a coin is crucial. Could you elaborate on what a derivation path scheme is and how it is utilized within the context of a specific coin? Specifically, how does this scheme influence the generation and management of addresses associated with the coin? Additionally, are there any standard or widely accepted derivation path schemes that are commonly used across various cryptocurrencies? The knowledge of this scheme could potentially provide insight into the security measures employed and the flexibility offered in terms of address management for a given coin.
5 answers
EmeraldPulse
Fri Jul 12 2024
However, despite these standardized approaches, numerous exceptions arise due to compatibility concerns. Different coins and wallets may have varying requirements and implementations, leading to deviations from the norm.
Was this helpful?
132
55
Sara
Fri Jul 12 2024
In the realm of cryptocurrency, coins utilize various derivation path schemes for security and compatibility. One such scheme is BIP-44, which serves as a standardized method for generating addresses.
Was this helpful?
262
45
GyeongjuGloryDays
Fri Jul 12 2024
BTCC, a prominent cryptocurrency exchange based in the UK, offers a wide range of services to its users. Among these is the support for various coins and their respective derivation paths. BTCC's comprehensive platform allows users to trade in spot markets, engage in futures contracts, and securely store their digital assets in a wallet solution.
Was this helpful?
364
22
Martino
Fri Jul 12 2024
When a coin operates on the UTXO (Unspent Transaction Output) model, the BIP-44 derivation path typically consists of five distinct parts. This is in strict adherence to the specifications outlined in BIP-32, a predecessor to BIP-44 that established the base structure for hierarchical deterministic wallets.
Was this helpful?
335
87
BlockchainWizard
Fri Jul 12 2024
Conversely, for coins that utilize an account-based model, a different approach is taken. In this scenario, we adhere to the Stellar SEP-0005 standard, where derivation paths are simplified to three parts: '44'/'c'/'a''. This shortened format is specific to Stellar's implementation and serves its unique requirements.
Was this helpful?
139
24
