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Wallet Technology Overview

 Wallet Technology Overview

Wallet Technology Overview

Ethereum wallet may be a key chain containing pairs of personal and public keys,Ethereum wallet doesn't contain ether or tokens.From these keys they control the ether or tokens.

User sign transactions with the private keys,there by proving they own the ether.The ether is stored on the blockchain.

Types of Wallet

There are two primary sorts of wallets, distinguished by whether the keys
they contain are associated with one another or not.

1.Nondeterministic wallet (HD Wallet)

Each key's independantally generated from a special random number.
The keys aren't associated with one another .
Also referred to as JBOK (Just a bunch of keys) wallet.

2.Deterministic wallet

All the keys are derived from one passkey ,known as Seed.
Keys are associated with one another .
It are often generated again from original seed
the foremost common method is free-like-structure.Also referred to as HD(Hierachial Deterministic) wallet.

3.Hierarchical Deterministic (HD) wallets

the foremost advanced sort of a deterministic wallet is that the hierarchial deterministic (HD) wallet defined by Bitcoin's BIP-32 standard.
HD wallets contain keys derived during a tree structure,such that a parent key can derived a sequence of kid keys,each of which may derive a sequence of grandchild keys,and so on.
HD wallets offer a couple of key advantages over simpler deterministic wallets.
The tree structure are often wont to express additional organizational meaning.
Users can create a sequence of public keys without having access to the corresponding private keys.This allow your wallet to execute receive-only mode.


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