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These wallets contain randomly generated private keys and are also called just a bunch of key wallets.

A.

Brain Wallets

Answers
A.

Brain Wallets

B.

Hierarchical Deterministic Wallets

Answers
B.

Hierarchical Deterministic Wallets

C.

Non-Deterministic Wallets

Answers
C.

Non-Deterministic Wallets

D.

Deterministic Wallets

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D.

Deterministic Wallets

Suggested answer: C

Explanation:

Non-Deterministic Wallets, also known as 'Just a Bunch of Keys' (JBOK) wallets, contain randomly generated private keys that are not derived from a single seed. In this type of wallet, each key is created independently and must be backed up individually, as there is no way to recover keys through a mnemonic seed phrase.

Key Details:

Random Key Generation: Non-Deterministic wallets generate private keys independently, without a hierarchical or sequential structure. As a result, each key is standalone, and losing a key means losing access to the corresponding funds permanently.

Backup Requirements: Since each key is unique and unrelated, Non-Deterministic wallets require separate backups for each key. This differs from Hierarchical Deterministic wallets, which can be restored using a single seed phrase.

Use Case: These wallets were more common in the early days of cryptocurrency, but they are less favored today due to the convenience and recoverability provided by deterministic wallets.

In conclusion, C. Non-Deterministic Wallets is the correct answer, as it refers to wallets that contain randomly generated private keys and are known as JBOK wallets.

asked 24/10/2024
Irving Indian
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