Derivation path

m / purpose' / coin_type' / account' / change / address_index

For example,

m/44’/60’/0’/0/0

purpose: constant

coin_type: ethereum(60)

account

change

• external(0): for deposit
• internal(1): for sending back

address: public key and private key

master private key’s sole purpose is wallet tree regeneration. It is unable to sign transactions.

change address becomes harder for external observers to track your wallet balance and transaction history.

account와 address의 차이점: 은행을 예로 들어, account는 kaleb이라는 사람이 business 통장, personal 통장을 분리해놓은 방식이고, address는 business 통장으로 관리하는 계좌번호이다.

Essentially, a hardened child key is is computed with hash(parent private key + index), whereas a non-hardened child key is computed with hash(parent public key + index).