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Deterministic wallet means that all of the keys/addresses that are used by the wallet are generated from the wallet's initial seed. (As opposed to the older cla
by AgentME 9y ago
Deterministic wallet means that all of the keys/addresses that are used by the wallet are generated from the wallet's initial seed. (As opposed to the older classic style where 100 keys are pre-generated randomly, and more keys are randomly generated as needed.) The benefit of a deterministic wallet is that a single backup is enough to cover all of the funds that will ever be kept in the wallet. (In the classic wallet style, if you don't make a new backup regularly every 100 addresses, then funds in later addresses won't be accessible through the backup.)
- deleted 9y ago[deleted]
- gesman 9y agoAlso - it's a perfect non-electronic way to have your funds. Seed could be a sequence of words (this thing needs to be backed up and stored safe!) Huge advantage is that you can save the seed in safety deposit box in a bank, written on paper - totally non electronic way. Then you can recreate wallet from seed at any time and manage your funds.
- pocketsquare2 9y agoSorry, but how is that any more non-electronic than storing your ATM PIN in a safe? Given that the weakest security link is invariably human.
- AgentME 9y agoThe ATM situation has a ton of links including your bank and the possible records of everywhere you've used your debit card. If your bitcoin private key only exists on a piece of paper and not on any networked computers, then there's no way that malware or a company being hacked or an exchange going down is going to affect its balance.