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


After plenty of pockets testing, I am considering that solely account degree 0 must 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 non-obligatory 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 believe altering the passphrase to create new “wallets” from a seed is best/safer than making an attempt to increment account to create new wallets.

Is not it safer to all the time use account 0 as a result of restoring a seed phrase will normally default to displaying the consumer account 0? If you happen to had used account 1, it appears simpler to neglect this, not know the best way to 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 varieties). This fashion you would not need to etch new metallic plates and go to deep-cold storage as typically; if it is a ache to do, you may not do it. The account discipline would appear like the best way to go then: Increment the account quantity every time you want a brand new pockets. Nevertheless, I’ve not discovered a pockets that simply restores accounts apart from account 0.

Are there wallets that scan for funds in accounts >0? I am considering 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. Getting into the passphrase is normally a menu possibility or a dialog field once you join the {hardware} pockets. In fact, this implies you’ll want to handle passphrases however it appears simpler to revive this fashion, no less than to me.

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

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

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