What is Nostr?
Pieter Wuille [ARCHIVE] /
npub1tje…tl6r
2023-06-07 15:27:30
in reply to nevent1q…yd9s

Pieter Wuille [ARCHIVE] on Nostr: 📅 Original date posted:2014-11-17 📝 Original message:On Mon, Nov 17, 2014 at ...

📅 Original date posted:2014-11-17
📝 Original message:On Mon, Nov 17, 2014 at 1:31 PM, Chris Pacia <ctpacia at gmail.com> wrote:
> If users wishes to use stealth addresses with out of band communication, the
> benefits of HD would largely be lost and they would be back to making
> regular backups -- this time after every transaction rather than every 100.


That is inevitable for any wallet that offers any functionality beyond
just maintaining a balance and the ability to send coins. In
particular, anything that wishes to list previous transaction (with
timestamps, history, metadata, messages sent using the payment
protocol, ...) needs backups.

What HD wallets (or any type of deterministic derivation scheme) offer
is the fact that you can separate secret data and public data. You
only need one safe backup of the master secret key - all the rest can
at most result in privacy loss and not in lost coins.

--
Pieter
Author Public Key
npub1tjephawh7fdf6358jufuh5eyxwauzrjqa7qn50pglee4tayc2ntqcjtl6r