- Entropy: generate the entropy numbers -> create the master private key
- Seed Phrase: translate numbers into words using the bip 39 word list
- Master Private Key: seed phrase imported into hardware wallet -> convert to seed -> create master private key
- XPUB: one extended public key or X Pub -> create a single Sig wallet. X Pubs are used to build wallets, check balance and receive Bitcoin. A master private key can provide approval for spending Bitcoind while an X Pub can not. X pubs are often exported from the hardware wallet to an internet connected devices, such as a computer or phone.
- Plain public keys: a wallet can be thought of as a collection of addresses. Each of which can receive Bitcoin and become added to the records of the Bitcoin blockchain. An X pub can produce additional keys of its own. It can create unlimited plain public keys which each serve as a main ingredient for building an address.
- Addresses: An address is a string of letters and numbers that can be shared with other people to received Bitcoin from them.
- Multisig wallet: 3 Master Private Key -> 3 X Pubs -> 3 Public keys
January 21, 2025
Bitcoin Wallets
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