Deterministic Wallet

A collective term for different ways to generate a sequence of private keys and/or public keys. A deterministic wallet does not need a Key Pool. The simplest form of a deterministic wallet is based on hashing a secret string linked together with a key number. For each number the resulting hash is used as a private key (the public key is derived from it). More complex schemes use elliptic curve arithmetic to derive sequences of public and private keys separately which allows generating new addresses for every payment request without storing private keys on a web server.

Reference:

Malone, J.A (2015). Glossary of Bitcoin Terms and Definitions. United States: Lulu Press, Inc

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