Would it be OK from a technical and security point of view, to have deterministic wallet like this:
1. Randomly generate one initial secret seed. For argument's sake let's say this has 'enough' entropy.
2. Generate private keys as hashes from this seed + a counter. 'Hash' could be SHA256 or SHA3-256 or a HMAC or preferably some 256-bit KDF.
Other than the disadvantage of not having
type 2 determinism (ability to generate subsequent addresses without having to generate their corresponding private keys first), is there anything bad, wrong, or flawed with this approach?
