What Is BIP32 (Hierarchical Deterministic Wallets)?
BIP32 (Bitcoin Improvement Proposal 32) defines the standard for Hierarchical Deterministic (HD) wallets. It allows a single master seed to generate an entire tree of key pairs, enabling users to create unlimited addresses from one backup while maintaining organization.
One Seed, Infinite Keys
Instead of backing up every private key individually, HD wallets let you back up just the master seed once (usually as a BIP39 mnemonic phrase). All future keys can be derived from this single seed.
Key Features
Hierarchical Structure
Keys are organized in a tree structure with parent-child relationships. This enables logical organization (e.g., separate accounts for savings, spending) all from one seed.
Deterministic Generation
All keys are mathematically derived from the master seed using a deterministic algorithm. The same seed will always generate the same sequence of keys, ensuring recovery is reliable and predictable.
BIP32 is the foundation for modern Bitcoin wallets and works alongside BIP39 (mnemonic phrases) and BIP44 (multi-account hierarchy) to create a complete, user-friendly wallet experience.
Quick Facts
- •Introduced in 2012 by Pieter Wuille
- •Enables creating billions of addresses from one seed
- •Foundation for modern Bitcoin wallets