When I was looking at bitcoin wallets to understand more. As a result of my discovery of Hierarchical Deterministic Wallets (HD wallets), I can see how all keys are generated from a single source using HD wallets. Now, I have a query: With the existence of other wallets, why do we utilize this HD wallet?
2 Is it a more stronger wallet than the one we all typically use?
3 how does these HD wallets works. And what are the differences between extended keys and mnemonic seed?
I brought it up since I don't understand these. Thank you
It helps to speed up the work, you could generate 1000 private keys with a master key or seed, doesn't matter if you lose 500 of those keys, you could just use your seed to generate them again.
For example online wallets, exchanges use such wallets, if they give you a private key, it means they can regenerate that key by using a seed or a master key.
You could use a seed/mnemonic seed as your master seed, some wallets use the seed as an entropy source and the wallet can be encrypted with a password, some wallets allow you to carry only the seed instead of 1000 private keys, you could enter the seed into the same version of that wallet on another computer and regenerate all your keys.
I'm also confused because there are too many different wallets and each operate by their own standard.
