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bip-0388.mediawiki

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== Abstract ==
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Software wallets and hardware signing devices sequester wallet uses into logically separate "accounts".
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Software wallets and hardware signing devices typically partition funds into separate "accounts". When signing or visualizing transactions, this allows to show to the user aggregate in-flow or out-flow information for one or more involved accounts.
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Wallet policies build on top of output script descriptors to represent such accounts in a compact, reviewable way.
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An account encompasses a logical group of receive and change addresses, and each wallet policy represents all descriptors necessary to describe an account in its entirety.
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By constraining the derivation path patterns to have a uniform structure, wallet policies prevent key reuse among the same or different UTXOs of the same account.
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It is strongly recommended to avoid key reuse across accounts. Distinct public keys per account can be guaranteed per hardened derivation paths. This specification does not mandate hardened derivation to maintain compatibility with existing deployments that do not adhere to this recommendation.
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It is strongly recommended to avoid key reuse across accounts. Distinct public keys per account can be guaranteed by using distinct hardened derivation paths. This specification does not mandate hardened derivation in order to maintain compatibility with existing deployments that do not adhere to this recommendation.
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It is out of scope for this document to guarantee that users do not reuse extended public keys among different wallet accounts. This responsibility is left to the users and their software wallet.
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