Author: Andrew Chow 2021-06-23 01:17:01
Published on: 2021-06-23T01:17:01+00:00
This proposal suggests a derivation scheme for HD wallets whose keys are involved in single key P2TR outputs as the Taproot internal key. The proposed scheme is based on BIP 44 and is identical to BIPs 49 and 84, with the actual value to be used set to the BIP number once assigned. This BIP does not specify new version bytes for extended key serialization because it is unnecessary with the advent of descriptors. The purpose of this BIP is to drive adoption and implementation of Taproot into software and hardware wallets. The proposed derivation scheme uses the same account-structure as BIPs 44, 49, and 84, but with a different purpose value for the script type. To derive the output key used in the P2TR script from the derived public key, the method recommended in BIP 341 is used. In a transaction, the scripts and witnesses are as defined in BIP 341. This BIP is not backwards compatible by design, but it should not be difficult to implement since it uses the same method used in BIPs 44, 49, and 84. The proposed derivation scheme will make it easier for HD wallets that only have a backup of the HD seed to recover single key Taproot outputs, which is useful for the usage of single key P2TR transactions. Reference links for BIP 32, 43, 44, 49, 84, and 341 are provided in the document. Test vectors are yet to be determined.
Updated on: 2023-05-21T02:49:49.926079+00:00