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Merge pull request bitcoin#611 from zylstra/patch-1
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bip-0049.mediawiki

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@@ -20,19 +20,19 @@ This BIP defines the derivation scheme for HD wallets using the P2WPKH-nested-in
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With the usage of P2WPKH-nested-in-P2SH ([[bip-0141.mediawiki#p2wpkh-nested-in-bip16-p2sh|BIP 141]]) transactions it is necessary to have a common derivation scheme.
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It allows the user to use different HD wallets with the same masterseed and/or a single account seamlessly.
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Thus the user needs to create a dedicated segregate witness accounts, which ensures that only wallets compatible with this BIP
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will detect the account and handle them appropriately.
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Thus the user needs to create dedicated segregated witness accounts, which ensures that only wallets compatible with this BIP
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will detect the accounts 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) 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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2) Create dedicated accounts only used for segregated witness addresses.
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2) Create dedicated accounts used only for segregated witness addresses.
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The solutions from point 1 have a common disadvantage: if a user imports/recovers a BIP49-compatible wallet masterseed into/in a non-BIP49-compatible wallet, the account might show up but also it might miss some UTXOs.
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@@ -53,7 +53,7 @@ serialization method.
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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 `49'`. The rest of the levels are used as defined in BIP44
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For the `purpose`-path level it uses `49'`. The rest of the levels are used as defined in BIP44.
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===Address derivation===
@@ -68,7 +68,7 @@ To derive the P2SH address from the above calculated public key, we use the enca
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==Backwards Compatibility==
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This BIP is not backwards compatible by design as described under [#considerations]. A not compatible wallet will not discover accounts at all and the user will notice that something is wrong.
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This BIP is not backwards compatible by design as described under [#considerations]. An incompatible wallet will not discover accounts at all and the user will notice that something is wrong.
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==Test vectors==

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