Deterministic Wallet Formats#
Type 1: Single Chain Wallets#
A Type 1 deterministic wallet is the simpler of the two, which can create a single series of keys from a single seed. A primary weakness is that if the seed is leaked, all funds are compromised, and wallet sharing is extremely limited.
Type 2: Hierarchical Deterministic (HD) Wallets#
For an overview of the HD wallet, please see the developer guide section. For details, please see BIP32.