Derivation Path

A derivation path is a structure that determines which child keys an HD wallet derives from its root key material. A single seed can generate many different keys, and the derivation path selects a specific branch of that hierarchy.

BIP-32 provides a widely used framework for hierarchical deterministic derivation, while account and address schemes may use additional standards such as BIP-44. A path can contain levels corresponding to purpose, coin type, account, chain, and address index.

Why the path matters during recovery

If a user restores a wallet from a seed phrase but selects a different derivation path, the application may display an empty balance even though the original assets remain on the blockchain. The issue may therefore be the derivation branch rather than the seed itself.

Wallet migration should account for the standard, account type, and derivation path used by the original wallet. Seed compatibility alone does not guarantee that every previously used address will be discovered automatically.