ExamGecko
Question list
Search
Search

Question 10 - 312-82 discussion

Report
Export

These wallets store keys in a tree structure derived from a seed.

A.

Brain Wallets

Answers
A.

Brain Wallets

B.

Hierarchical Deterministic Wallets

Answers
B.

Hierarchical Deterministic Wallets

C.

Deterministic Wallets

Answers
C.

Deterministic Wallets

D.

Non-Deterministic Wallets

Answers
D.

Non-Deterministic Wallets

Suggested answer: B

Explanation:

Hierarchical Deterministic (HD) Wallets are wallets that generate private and public keys in a tree structure, starting from a single seed phrase. This seed phrase can generate multiple key pairs, allowing users to back up and recover all their wallet addresses using one phrase, which enhances security and convenience.

Key Details:

Tree Structure: HD wallets use a root seed to derive an entire hierarchy of keys. Each branch in the tree can create new sub-branches, generating separate addresses for different transactions without reusing them, which provides better privacy.

Seed-Based Recovery: Users can restore all wallet addresses with the original seed phrase, making HD wallets more secure and easy to back up compared to non-deterministic wallets, which would require individual backups for each key.

Compatibility with Blockchain Standards: HD wallets adhere to the BIP32 and BIP44 standards, which outline the derivation paths and formats used by these wallets. This compatibility allows for interoperability among different wallet providers.

In conclusion, Hierarchical Deterministic Wallets (answer B) best describes wallets that store keys in a tree structure derived from a seed.

asked 24/10/2024
Piotr Szwajkowski
39 questions
User
Your answer:
0 comments
Sorted by

Leave a comment first