Now, before you start rolling your eyes and thinking “who needs this?” let me explain. HD Wallets are basically just fancy pants versions of regular ol’ Bitcoin wallets that allow for partial or full sharing between different systems without the need for backups after every transaction. And creating unlinkable child keys is a crucial part of making sure those shared wallets stay secure and private.
So, how do we create these magical child keys? Well, it all starts with a seed that’s right, just like growing plants or raising children (but without the messy diapers). This seed is essentially a random string of characters that serves as the foundation for your HD Wallet. From there, you can generate an infinite number of child keys by using a combination of math and magic (okay, maybe not magic… but close enough!).
Here’s how it works: let’s say you have a parent private key and a chain code these are the two pieces that make up your extended key. To create a child private key, you simply add the seemingly-random 256 bits on the lefthand side of the hash output to the parent private key (modulo G), which gives you a new private key for your child account. And if you want to get fancy and create grandchild keys or even great-grandchild keys, just repeat the process using the chain code from your previous child account!
Now, I know what some of you might be thinking “but wait, isn’t this all a bit too complicated for my simple mind?” And to that, we say… yes. ) that can help make the process a little less daunting. Plus, once you get the hang of it, creating unlinkable child keys in an HD Wallet is actually pretty easy and straightforward just follow these simple steps:
1. Generate your seed using a trusted source (like a hardware wallet or a secure random number generator).
2. Use that seed to create your parent private key and chain code.
3. Create as many child keys as you need by adding the seemingly-random 256 bits on the lefthand side of the hash output to your parent private key (modulo G), using the same process for each new account.
4. Repeat steps 1-3 for any additional accounts or subaccounts that you want to create within your HD Wallet.
And there you have it creating unlinkable child keys in a hierarchical deterministic wallet! It might sound like a lot of work at first, but trust us… once you get the hang of it, it’s actually pretty easy and straightforward (and way more secure than using regular ol’ Bitcoin wallets). So give it a try your future self will thank you for being so proactive about protecting your digital assets!