I'm curious about how this works with Bitcoin. Just one recovery seed and you can have various wallet addresses? Like, I can give my boss one for my salary and another to a friend for some payment. They all come from the same seed? Sounds confusing.
You're mixing things up. The seed phrase isn’t the same as a private key. Each Bitcoin address has its own private key. If you try to restore using just one address's private key, you’ll only get that address back. If you're still confused after reading, hit up the tech support board.
The seed phrase is like a random number that creates your master private key, which then generates individual private keys. This whole process is based on math, and that's how you get multiple addresses. Using an HD wallet makes it easier since you only need to remember the seed.
Chapter 5 in Mastering Bitcoin talks about wallets and is a solid resource for understanding HD wallets. HD wallets are just better organized than the old school ones.
It’s pretty straightforward with HD wallets. The seed creates the seed for the master private key, which can then generate child private keys and their corresponding addresses. You’ll see it like a tree structure.
Yep, exactly. Think of a recovery seed as a random number like a private key, but it’s special because it can create endless secure private keys. Instead of generating a new private key each time, you derive them from the seed using a hash function. Makes everything easier.