Hierarchical deterministic wallets, are cryptocurrency wallets that use private keys of 12, 18 or 24 words, with which it is possible to generate an unlimited number of public addresses. This is done automatically, hierarchically and sequentially. This technique allows you to create multiple receiving addresses without creating multiple private keys. A limitation that was identified early on.

BIP 32 allows the wallet, from a single private key, to manage a hierarchical structure of private keys with all the private keys of the tree, and of course, with all the funds. This improvement in bitcoin allows you to generate an unlimited number of public addresses to receive payments that helps to maintain and guarantee the financial privacy of users, as well as security. BIP 32 also allows you to generate public master keys so that with them it is possible to see all the addresses generated by the private key.