2. Deterministic WalletDeterministic WalletMasterpublickeyMaster Secret KeyMasterPublic Keygenerationmsk=sEZpMPKSPEGp,G,PEG,H:{0,1)*-→ZpsecretkeylderivationPublickeyderivationKeypairi-thSecretKeyi-th Public Keyski=S+H(MPK,0)EZpPK=MPK+HCMPK,iPEGPKi = sk;P
◼ Deterministic Wallet 2. Deterministic Wallet Master Secret Key 𝑚𝑠𝑘 ≔ 𝑠 ∈ 𝑍𝑝 Master Public Key 𝑀𝑃𝐾 ≔ 𝑠𝑃 ∈ 𝐺 𝑝, 𝐺, 𝑃 ∈ 𝐺, 𝐻: 0,1 ∗ → 𝑍𝑝 i-th Public Key 𝑃𝐾𝑖 ≔ 𝑀𝑃𝐾 + 𝐻 𝑀𝑃𝐾, 𝑖 𝑃 ∈ 𝐺 i-th Secret Key 𝑠𝑘𝑖 ≔ 𝑠 + 𝐻(𝑀𝑃𝐾, 𝑖) ∈ 𝑍𝑝 Master public key generation Key pair secret key derivation Public key derivation 𝑃𝐾𝑖 = 𝑠𝑘𝑖𝑃
2. Deterministic Wallet Applications of Deterministic WalletLow-maintenance walletswith easybackupandrecoveryOnlyneedtobackupthemastersecretkeyFreshlygeneratedcoldaddresses口Storethemasterpublickeyonhotstorage,thencaneasilyand convenientlygenerate cold addressesMerchantWeb,eachitemwithadifferentcoldaddressThe walletgeneratesnewaddressandtellsthepayerthenewaddress口Trustless auditRevealthe master publickeytothe auditors,thentheauditors canviewall thetransactionsrelatedtothewalletthecoinsaresafefromthetheftbythe auditor国Hierarchical Wallet allowing a treasurerto allocate funds to departments口Atreasurerofalargecompanycreateschildkeypairsforeachdepartmentwithinthecompanythe treasurerwill have the master public/secretkeyfor everything, but eachdepartmentwillonlyhavethekeytotheirownpartofthefundsHierarchicalWallet口
◼ Applications of Deterministic Wallet ◼ Low-maintenance wallets with easy backup and recovery ❑ Only need to back up the master secret key ◼ Freshly generated cold addresses ❑ Store the master public key on hot storage, then can easily and conveniently generate cold addresses ❑ Merchant Web, each item with a different cold address ❑ The wallet generates new address and tells the payer the new address ◼ Trustless audit ❑ Reveal the master public key to the auditors, then the auditors can view all the transactions related to the wallet ❑ the coins are safe from the theft by the auditor ◼ Hierarchical Wallet allowing a treasurer to allocate funds to departments ❑ A treasurer of a large company creates child key pairs for each department within the company ❑ the treasurer will have the master public/secret key for everything, but each department will only have the key to their own part of the funds ❑ Hierarchical Wallet 2. Deterministic Wallet