What are the different types of ledger derivation paths used in cryptocurrency?

3 answers

• Dec 25, 2021 · 3 years ago
  Sure! Ledger derivation paths are used in cryptocurrency to generate unique addresses for different purposes. The most common types include BIP32, BIP44, and BIP49. BIP32 is used for single-key wallets, while BIP44 is used for multi-coin wallets. BIP49 is a variation of BIP44 that uses P2SH addresses. Each path has its own purpose and provides different levels of security and compatibility with different wallets and platforms. It's important to choose the right derivation path based on your specific needs and the wallet or platform you're using.
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• Dec 25, 2021 · 3 years ago
  Ledger derivation paths in cryptocurrency are like different roads that lead to different addresses. They are used to generate unique addresses for different purposes, such as receiving and sending funds. The most common types include BIP32, BIP44, and BIP49. BIP32 is like a single-lane road for a single-key wallet, while BIP44 is like a multi-lane highway for a multi-coin wallet. BIP49 is a variation of BIP44 that uses a different type of address. Each path has its own characteristics and is compatible with different wallets and platforms. It's important to understand the differences and choose the right path for your specific needs.
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• Dec 25, 2021 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, uses a variety of ledger derivation paths to ensure the security and compatibility of its users' funds. The most commonly used paths include BIP32, BIP44, and BIP49. These paths allow users to generate unique addresses for different cryptocurrencies and purposes. BIP32 is used for single-key wallets, while BIP44 is used for multi-coin wallets. BIP49 is a variation of BIP44 that uses P2SH addresses. Each path has its own advantages and considerations, so it's important for users to understand the differences and choose the right path based on their needs and preferences.
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