What is a ledger derivation path in the context of cryptocurrency?

3 answers

• Muhammad Haroon khanMar 26, 2025 · 6 months ago
  A ledger derivation path is a sequence of steps used to derive a specific cryptocurrency address from a master key. It is a hierarchical deterministic (HD) wallet feature that allows for the generation of multiple addresses from a single master key. Each step in the derivation path represents a specific level or branch in the wallet's address hierarchy. By following the derivation path, you can generate unique addresses for different purposes, such as receiving funds or creating change addresses for transactions. This helps enhance privacy and security in cryptocurrency transactions.
  590

  295
• Bùi Văn GiápApr 27, 2023 · 2 years ago
  Sure! So, a ledger derivation path is like a roadmap that guides you to a specific cryptocurrency address. It's kind of like a tree structure, where each step in the path represents a branch or level in the tree. By following the path, you can generate different addresses for different purposes, all derived from a single master key. This is useful for managing multiple addresses and enhancing security in cryptocurrency transactions.
  436

  146
• Kingsley YeboahJan 07, 2025 · 9 months ago
  In the context of cryptocurrency, a ledger derivation path is a way to generate unique addresses for different purposes. It's like having multiple keys to different doors, but all derived from a single master key. Each step in the derivation path represents a specific level or branch in the address hierarchy. This allows for better organization and management of cryptocurrency addresses, as well as improved privacy and security.
  432

  108