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bip-p2sh-accounts.mediawiki

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@@ -22,20 +22,22 @@ will detect the account and handle them appropriately.
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===Considerations===
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Two generally different approaches are possible for current BIP44 capable wallets:
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1) Allow the user to use the same account(s) that they already uses, but add segregated witness encoded addresses to it
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1.1) Use the same public keys as defined in BIP44, but in addition to the normal P2PKH address also derive the P2SH address from it.
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1.2) Use the same account root, but branch off and derive different external and internal chain roots to derive dedicated public keys for the segregated witness addresses.
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1) Allow the user to use the same account(s) that they already uses, but add segregated witness encoded addresses to it
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2) Create dedicated accounts only used for segregated witness addresses.
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1.1) Use the same public keys as defined in BIP44, but in addition to the normal P2PKH address also derive the P2SH address from it.
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The solutions from point 1 have a common disadvantage: if a user imports/recovers a BIP<ThisBipNumber>-compatible wallet masterseed into/in a non-BIP<ThisBipNumber>-compatible wallet, the account might show up but also it might miss some UTXOs.
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Thus this BIP uses solution 2, which fails in a more visible way. Either the account shows up or not at all. The user does not have to check his balance after using the same seed in different wallets.
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1.2) Use the same account root, but branch off and derive different external and internal chain roots to derive dedicated public keys for the segregated witness addresses.
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2) Create dedicated accounts only used for segregated witness addresses.
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The solutions from point 1 have a common disadvantage: if a user imports/recovers a BIP<ThisBipNumber>-compatible wallet masterseed into/in a non-BIP{ThisBipNumber}-compatible wallet, the account might show up but also it might miss some UTXOs.
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Therefore this BIP uses solution 2, which fails in a more visible way. Either the account shows up or not at all. The user does not have to check his balance after using the same seed in different wallets.
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==Specifications==
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This BIP defines the two needed steps to derive multiple deterministic addresses based on a [[bip-0032.mediawiki|BIP 32]]
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root account.
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This BIP defines the two needed steps to derive multiple deterministic addresses based on a [[bip-0032.mediawiki|BIP 32]] root account.
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===Public key derivation===
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m / purpose' / coin_type' / account' / change / address_index
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</pre>
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For the `purpose`-path level it uses <ThisBipNumber>'. The rest of the levels are used as defined in BIP44
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For the `purpose`-path level it uses {ThisBipNumber}'. The rest of the levels are used as defined in BIP44
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===Address derivation===
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address = base58check(prefix | addressBytes) = 1xyz....
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</pre>
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==Reference==
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