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HD Wallet

An HD, or hierarchical deterministic wallet, is a type of wallet software that allows a single seed phrase to create and govern multiple 'child' keys and addresses.

In an HD wallet, an initial seed phrase (typically 8-24 words) functions as a master key such that the user can regenerate any private keys generated from the seed phrase. This system simplifies the key management requirements from a user's perspective, though it introduces a single point of vulnerability, namely the seed phrase.