safety – Why hassle with ‘account’ in derivation path?


After a lot of pockets testing, I am pondering that solely account degree 0 ought to be used. Particularly, when you think about restoring a pockets from the seed phrase.

m / objective' / coin_type' / account' / change / address_index

seed phrase: The 12 or 24 phrase mnemonic. AKA Restoration Seed. BIP39.

passphrase: An elective string that’s mixed with the seed phrase to create a seed. Generally known as the twenty fifth phrase (*cringe*). Additionally in BIP39.

As a result of most wallets make it easy to alter the passphrase and tough to alter the derivation path for an put in seed, I feel altering the passphrase to create new “wallets” from a seed is healthier/safer than making an attempt to increment account to create new wallets.

Is not it safer to at all times use account 0 as a result of restoring a seed phrase will normally default to displaying the person account 0? Should you had used account 1, it appears simpler to neglect this, not know specify it, and overlook your bitcoin saved in non-0 accounts.

As an alternative of producing and securing a number of seed phrases (eg. one for every pockets), there’s an argument to securely storing simply ONE seed phrase and utilizing that seed phrase for all wallets (even all coin sorts). This manner you would not must etch new steel plates and go to deep-cold storage as usually; if it is a ache to do, you may not do it. The account subject would appear like the best way to go then: Increment the account quantity every time you want a brand new pockets. Nonetheless, I’ve not discovered a pockets that simply restores accounts aside from account 0.

Are there wallets that scan for funds in accounts >0? I am pondering of one thing just like the gap-limit when scanning addresses for funds.

As an alternative of utilizing account within the derivation path, it is easy to simply restore a pockets with a passphrase. Coming into the passphrase is normally a menu possibility or a dialog field while you join the {hardware} pockets. In fact, this implies it is advisable to handle passphrases nevertheless it appears simpler to revive this fashion, a minimum of to me.

Some wallets require you to re-enter the 12/24-word seed phrase each time you wish to change the derivation path. This requires retrieving the seed phrase from a deep-cold vault. Should you used passphrases, you’d merely enter different passphrases to change wallets.

What has been your expertise with utilizing account within the derivation path?

Supply hyperlink

Leave a reply