Hierarchical Deterministic Wallet (HD Wallet)

A Hierarchical Deterministic (HD) wallet is a cryptocurrency wallet that generates all of its keys and addresses from a single master seed phrase. The "hierarchical" structure means keys are organized in a tree, allowing the creation of unlimited addresses from one seed. This makes backup simple (only the seed phrase is needed) and improves privacy by enabling a new address for each transaction. HD wallets are defined by BIP 32.