<p>Per <a href="https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki" rel="nofollow noreferrer">BIP39</a> the original entropy in form of mnemonic can be translated to master seed per <a href="https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki" rel="nofollow noreferrer">BIP32</a>. </p>

<blockquote>
  <p>This document describes hierarchical deterministic wallets (or "HD
  Wallets"): wallets which can be shared partially or entirely with
  different systems, each with or without the ability to spend coins.</p>
  
  <p>The specification is intended to set a standard for deterministic
  wallets that can be interchanged between different clients. Although
  the wallets described here have many features, not all are required by
  supporting clients. </p>
</blockquote>

<p>Using <a href="https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki" rel="nofollow noreferrer">BIP44</a> one can use different <code>coin_type</code> codes for different currencies and standard derivation is <code>m / 44' / 0' / 0'</code> </p>

<p>BIP44:</p>

<blockquote>
  <p>m / purpose' / coin_type' / account' / change / address_index</p>
</blockquote>

<p>As far as I know BitPay/Copay use this <a href="https://walletsrecovery.org/" rel="nofollow noreferrer">derivation type</a>. </p>

CC BY-SA 4.0
2020-06-10T18:01:07.607Z
2020-06-10T18:01:07.607Z
Tony Sanak
<p>I wonder how crypto wallet like BitPay works?</p>

<p>They claim to be an offline wallet that you can back up with simply a 12 words phrase. Yet, they allow you to create an infinite number of wallets across multiple coins like BTC, BCH, ETH, XRP ...</p>

<p>How does such wallet keep track of the created addresses without relying on an external 3rd party server and how it uses to the 12-word phrase to access the private key of each and all of these created wallets?</p>

CC BY-SA 4.0
2020-06-10T17:57:56.807Z
There's a specification that defines a common algorithm to derive private keys ([BIP 32](https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki)). It's used with ([BIP 44](https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki) which specifies the "derivation path" for different accounts.)
MCCCS
<wallet><lightning-network><wallet-recovery><bitpay>
How does the 12 keyword back phrase works and how does it allow the creation of infinite number wallet address across multiple cryptocoins?
TSR
# How does the 12 keyword back phrase works and how does it allow the creation of infinite number wallet address across multiple cryptocoins?

(Asked by: username_0 on 2020-06-10)

I wonder how crypto wallet like BitPay works?

They claim to be an offline wallet that you can back up with simply a 12 words phrase. Yet, they allow you to create an infinite number of wallets across multiple coins like BTC, BCH, ETH, XRP ...

How does such wallet keep track of the created addresses without relying on an external 3rd party server and how it uses to the 12-word phrase to access the private key of each and all of these created wallets?

**Tags:** wallet, lightning-network, wallet-recovery, bitpay

> **Comments:**
> **username_1**: There's a specification that defines a common algorithm to derive private keys ([BIP 32](https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki)). It's used with ([BIP 44](https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki) which specifies the "derivation path" for different accounts.)  

---

## 1 answers

### Answer by username_2 on 2020-06-10. Score: 1

Per [BIP39](https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki) the original entropy in form of mnemonic can be translated to master seed per [BIP32](https://github.com/bitcoin/bips/blob/master/bip-0032.mediawiki).

> This document describes hierarchical deterministic wallets (or "HD
> Wallets"): wallets which can be shared partially or entirely with
> different systems, each with or without the ability to spend coins.
>
> The specification is intended to set a standard for deterministic
> wallets that can be interchanged between different clients. Although
> the wallets described here have many features, not all are required by
> supporting clients.

Using [BIP44](https://github.com/bitcoin/bips/blob/master/bip-0044.mediawiki) one can use different `coin_type` codes for different currencies and standard derivation is `m / 44' / 0' / 0'`

BIP44:

> m / purpose' / coin\_type' / account' / change / address\_index

As far as I know BitPay/Copay use this [derivation type](https://walletsrecovery.org/).


---

