HD Wallet

Add HD Wallets to Your Blockchain Applications the Easy Way

Kaleido makes it simple to submit transactions anonymously, mask your identity, and manage accounts with HD Wallets.
What it is

An Elegant Solution for Account Management and Identity Masking

An HD wallet, or Hierarchical Deterministic wallet, is a type of digital wallet used in cryptocurrencies. It creates a hierarchical structure of private/public key pairs from a single, master seed. This seed can generate multiple key pairs, allowing users to create a new address for every transaction they make.

The advantage of this approach is that it enhances privacy and security since all addresses are related, but not publicly linked. The hierarchical structure also enables efficient management of keys, permitting the creation of multiple child wallets under a single parent, or master, wallet. This allows for organized categorization of funds and ease of backup.

If the master seed is securely stored, all child keys can be recovered, making the loss of individual keys less critical. HD wallets follow standards like BIP32 and BIP44, which are accepted across various cryptocurrencies.

Unlimited, Unique Accounts & Associated Private Keys

Mask your identity on a per-transaction basis via an unlimited supply of account addresses, each with their own unique, untraceable private key. Different accounts can be used for different transaction classes or to manage the end users of an organization.

Regeneration

Easily backup and restore an exact replica of your wallet when you need it. Using a 12-word mnemonic "seed phrase” (entropy), each account can be recreated identically. Remember the mnemonic, never lose the wallet.

Multiple Wallets for Account ID Management

Partition separate wallets across your organization to avoid key reuse and duplicate signing.

Benefits of Kaleido's HD Wallet Service

Kaleido’s hierarchical deterministic (HD) wallets service are great for companies looking to easily deploy a secure and efficient asset management solution.

HD wallets offer several key advantages that cater to both individual users and businesses.

Their ability to generate unique addresses for each transaction enhances privacy, which is a feature leveraged by large exchanges in the crypto space. Businesses, however, often use HD wallets for organizational efficiency, segregating funds into different categories or accounts.

For instance, HD wallets can be deployed to manage various operational funds within a single master wallet. This structure allows forsecure backups, a significant feature for enterprises that want an added layer of security.

The ability to restore entire wallet structures from a master seed has made HD wallets an attractive option for various financial services platforms. Streamlined cross-platform compatibility and ease of recovery make HD wallets a valuable tool when an institution is trying to deliver a blockchain solution that is accessible to millions of consumers but may require some centralized control.

Why Kaleido

Everything You Need to Build Enterprise-Grade Blockchain & Digital Asset Apps

Kaleido's blockchain platform makes it radically simple for businesses to create complete web3 networks and applications. With just a few clicks, you can launch a blockchain network, deploy it globally, set up governance, and start plugging in familiar services.

Quickly Launch Blockchain
Networks

Launch blockchain networks in minutes
Choose from leading protocols
Select permissioned chains, appchains,  sidechains, or consortium chains
Deploy on AWS, Azure or on-prem
Stand up nodes worldwide in regions of your choice

Simplify Development to Get to
Production Fast

Access 40+ plug-and-play services for wallets, key management, storage, data, and more
Automate management and deployment with our fully API-enabled platform
Turn any smart contract into familiar APIs with our smart contract API generator
Make digital assets, NFTs, and consortia easy with our dedicated solutions
Mint, manage, and burn tokens at scale with robust tooling

All Backed by Enterprise-Grade Infrastructure and Support

Modern cloud scale architecture
Built-in high availability and disaster recovery
ISO 27k and SOC 2 Type 2 compliant
Integrate seamlessly with existing internal systems
Open source tech and no vendor lockin
24x7 support and SLAs
Additional Resources
Learn More About HD Wallet
Ready to Get Started with HD Wallet?

Common Questions about HD Wallets

What are HD Wallets?

HD wallets, or Hierarchical Deterministic wallets, are a type of blockchain wallet that use a single master seed to generate an entire tree of private keys. HD wallets have the advantage of being able to generate a virtually unlimited number of private keys, so the user can have a unique address for every transaction if they wish, enhancing privacy and security.

How do HD Wallets work?

HD wallets work by generating a single master seed when the wallet is first created. This master seed is a string of randomly generated words that is used to generate all of the private keys for the wallet. When a user wants to make a transaction, the HD wallet uses the master seed to generate a unique private key for that specific transaction. The private key is then used to create a digital signature for the transaction, which is required to complete the transaction and transfer the funds.

The advantage of using an HD wallet is that it allows the user to recover their wallet and access their funds in the event that they lose their device or forget their private keys. This is because the master seed can be used to regenerate all of the private keys for the wallet. It is important to keep the master seed in a secure location because anyone who has access to the master seed will also be able to access the funds in the wallet.

What are the benefits of HD Wallets?

There are several benefits to HD wallets, including

  1. Security: HD wallets offer enhanced security because they use a single master seed to generate all of the private keys for the wallet. This means that the wallet can be recovered from a single seed in the event that the wallet is lost or the user forgets their private keys.
  2. Convenience: HD wallets allow users to generate a virtually unlimited number of private keys, which means they can have a unique address for every transaction if they wish. This can be convenient for users who want to maintain privacy or who want to keep their transactions separate from each other.
  3. Compatibility: HD wallets are compatible with a wide range of devices, including desktop computers, mobile phones, and hardware wallets. This means that users have the flexibility to access their HD wallet from any device they choose.
  4. Ease of use: HD wallets are easy to use and do not require the user to remember multiple private keys. Instead, the user only needs to remember the single master seed in order to access their wallet and complete transactions.

Overall, HD wallets offer a convenient and secure way to manage and store digital assets, which is why they are widely used in blockchain apps.