Hierarchical Deterministic (HD) Wallet

What HD Wallet Means in Crypto?

A hierarchical deterministic wallet is a digital wallet. It is frequently used to store the keys for owners of cryptocurrencies like Bitcoin and Ethereum. There are two keys in a cryptocurrency wallet: a public key or address and a private key. This set is intended to provide both transactional anonymity and security from hackers. To avoid losing each key and the funds it is attached to permanently, the owner must back them up in the wallet. However, all keys in deterministic wallets can be linked to an initial random seed, which is typically a collection of random phrases, and a hash function. All private and public keys can be recovered using just the original seed. It just needs one backup when it is first created.