HD Wallets

Hierarchical deterministic wallet implementation with BIP44 standard

BIP32

BIP44

BIP39

Ed25519

BIP44 Derivation

Standard hierarchical deterministic key derivation

HDWallet::derive_address(index)

Uses secp256k1 curve with Ed25519 for signing

AES-256-GCM Encryption

Encrypted storage with authenticated encryption

PBKDF2 + AES-256-GCM

100,000+ iterations for key stretching

BIP39 Mnemonics

Standard 12/24 word seed phrase generation

HDWallet::generate_mnemonic()

2048 word dictionary with checksum validation

Multi-Account Support

Multiple accounts from single seed phrase

Wallet::create_account(name)

Each account has separate derivation path

BIP44 Derivation Path

Standard hierarchical path: m/44'/0'/0'/0/index

Master private key

Generated from seed phrase

BIP32 root

m/44'

Purpose (hardened)

BIP44 standard

Fixed value 44

m/44'/0'

Coin type (hardened)

Y Protocol coin type

0 for development/testing

m/44'/0'/0'

Account (hardened)

Account 0

Multiple accounts per wallet

m/44'/0'/0'/0

Change (external)

Receiving addresses

0 = receive, 1 = change

m/44'/0'/0'/0/0

Address index

First address

0, 1, 2, 3...

HD Wallet Creation

Generate multiple addresses from single seed phrase

// Create HD wallet from mnemonic
use y_protocol_wallet::{HDWallet, Wallet};

let mnemonic = "abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon abandon about";
let hd_wallet = HDWallet::from_mnemonic(mnemonic)?;

// Derive addresses using BIP44 path
let address_0 = hd_wallet.derive_address(0)?; // m/44'/0'/0'/0/0
let address_1 = hd_wallet.derive_address(1)?; // m/44'/0'/0'/0/1

println!("Address 0: {}", address_0.address);
println!("Address 1: {}", address_1.address);

Technical Specifications

Cryptographic Standards

• BIP32/BIP44 key derivation
• Ed25519 signature scheme
• SHA-256 for address generation
• AES-256-GCM encryption

Performance

• Address generation: ~1ms
• Transaction signing: ~0.1ms
• Wallet loading: <100ms
• Memory usage: <10MB

Test Coverage

65 tests covering all wallet functionality

HD wallet derivation

Address generation

Transaction signing

Encryption/decryption

BIP44 compliance