Trending Technology Machine Learning, Artificial Intelligent, Block Chain, IoT, DevOps, Data Science

Recent Post

Codecademy Code Foundations

Search This Blog

Bitcoin Wallet - Deterministic and Non - Deterministic Wallet

What is a Bitcoin Wallet ?
  • A wallet stores private keys.
  • The public addresses are automatically derived from the private keys.
  • A wallet does not store coins (Bitcoin, Litecoin, Ether etc.).
  • If you open your Bitcoin wallet and one of your Bitcoin address shows that is has a balance of 5 BTC, than these bitcoins are not actually stored in your wallet. It means that these 5 bitcoins were transferred to your Bitcoin address during a transaction. This transaction (TX) information is stored on the blockchain.
  • Your wallet quires the blockchain and searches for Unspent TX Outputs (UTXO) for all your Bitcoin address to display their balances.
  • The bitcoins on these UTXO can be unblocked and transferred to another Bitcoin address using the private keys stored in the wallet.
  • The word wallet is misleading, it just stores keys and not the coins.
  • If you lose your wallet, you lose your private keys and if you lose your private keys you can not unlock UTXO . This means you have lost access to your coins.
  • However if you can restore your private keys (for example you have made a backup you can always access your coins.
Non - Deterministic Wallet

Wallets stores private keys but they also create private keys.

A non-deterministic wallet does the following:
* It generates private key 1 which in turn creates a corresponding public address 1

* It generates private key 2 which in turn creates a corresponding public address2 

The private keys are randomly generated numbers which are not related to each other.

You can not derive these private keys with an algorithm.
Hence the words "non-deterministic". 

If you use a non-deterministic wallet you must make backups of these private keys.

If you have problems with your wallet, you can restore your wallet by importing the backupped private keys.

Deterministic Wallet
  • A deterministic wallet uses 12-24 words to create a 512 bit seed.
  • These words are called mnemonic words, because they are more easily to remember that this long hexadecimal string
  • The 512 bit seed is used to create a master private key.
  • This master key in turn is used to create private keys and corresponding public address.

Generally speaking using these 12=24 words will completer restore your walled with exactly the same private keys and corresponding public addresses. Hence the word "deterministic".


  1. I really appreciate the kind of topics you post here. Thanks for sharing us a great information that is actually helpful. Good day! bitcoin mixen

  2. I recently found many useful information in your website especially this blog page. Among the lots of comments on your articles. Thanks for sharing. BitcoinCash hard fork

  3. Hi there, I found your blog via Google while searching for such kinda informative post and your post looks very interesting for me Bitcoin ABC wallet

  4. certainly, the environmental news theses days are not so good but there are other good news too like opening of new forest reserves“ this website

  5. That is really nice to hear. thank you for the update and good luck. best bitcoin wallets

  6. It’s not that I want to copy your website, but I really like the design and style. Could you let me know which theme are you using? Or was it tailor made? read review

  7. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. From the tons of comments on your articles, I guess I am not the only one having all the enjoyment here keep up the good work how to earn bitcoins on iPhone

  8. I discovered your blog internet site on google and appearance a few of your early posts. Always keep inside the good operate. I simply extra the RSS feed to my MSN News Reader. Looking for forward to reading a lot more by you down the line!… why not look here

  9. This particular appears completely ideal. Each one of these small particulars are created along with large amount of history understanding. I love this a great deal Mine bitcoin with your cellphone

  10. I have been impressed after read this because of some quality work and informative thoughts. I just want to say thanks for the writer and wish you all the best for coming! Your exuberance is refreshing. cave 交易所

  11. This article was written by a real thinking writer without a doubt. I agree many of the with the solid points made by the writer. I’ll be back day in and day for further new updates. bitcoin to euro

  12. I am jovial you take pride in what you write. It makes you stand way out from many other writers that can not push high-quality content like you. bitcoin to visa

  13. I have read your article, it is very informative and helpful for me.I admire the valuable information you offer in your articles. Thanks for posting it.. btc to paypal

  14. Positive site, where did u come up with the information on this posting? I'm pleased I discovered it though, ill be checking back soon to find out what additional posts you include. Please continue this great work and I look forward to more of your awesome blog posts.

  15. It is perfect time to make some plans for the future and it is time to be happy. I've read this post and if I could I desire to suggest you some interesting things or suggestions. Perhaps you could write next articles referring to this article. I want to read more things about it! Bitcoin price x2 double your btc moon bitcoin live

  16. Quest for Bitcoin Electum Wallet to discover their site.

    After you get the wallet set up, require a couple of moments clicking around. Things to search for: best cryptocurrency to invest in Fortune

  17. Very informative post! There is a lot of information here that can help any business get started with a successful social networking campaign. binary options recovery

  18. Very informative post! There is a lot of information here that can help any business get started with a successful social networking campaign. binary options recovery

  19. Most Dads don't care for change except if it fundamentally offers an answer for a wallet issue he may be encountering. Inquire as to whether he loves his wallet and what he would change-trust me that he has been thinking about more than he even figures it out.

  20. Good post but I was wondering if you could write a litte more on this subject? I’d be very thankful if you could elaborate a little bit further. Appreciate it! go this

  21. I wanted to leave a little comment to support you and wish you a good continuation. Wishing you the best of luck for all your blogging efforts. nft wallet

  22. Front pocket wallet or back pocket wallet? Or on the other hand put it another way, does estimate matter? Engraving and surface space of the wallet..

  23. Great job for publishing such a beneficial web site. Your web log isn’t only useful but it is additionally really creative too.

  24. Ciao, posso recuperare i bitcoin di un wallet jbok con il seed???????
    Se siiiii , come?????
    Per favore!

  25. Good news is that often several banks in the USA as well as UK have banned the use of a credit card to purchase crypto currencies (CC's). The stated reasons are impossible to trust - like attempting to curtail money laundering, gambling, and protecting the retail investor from excessive risk. Can you insure cryptocurrency?

  26. Everyone has heard how Bitcoin and other crypto currencies have made millionaires of those who bought as recently as a year ago. crypto


John Academy