BIP32/43-based standard for Schnorr signatures & decentralized identity



Summary:

In response to a question about the use of different HD derivation paths in wallets, Bitcoin Improvement Proposal (BIP) 43 defines a dedicated purpose field for each key derivation and address encoding. This includes separate purposes for pre-SegWit, SegWit, and multisigs. With the introduction of Schnorr sigs/Taproot outputs, a new purpose is needed, prompting Maxim to propose a solution that supports all previous purposes, making them redundant and simplifying future wallets.


Updated on: 2023-06-14T17:21:54.242103+00:00