Bitcoin: How to save the derivation path using my paper wallet’s passphrase?

Saving the Bypass Path: A Key Consideration for Bitcoin Users

When it comes to securing your Bitcoin wallet, it’s crucial to understand how the blockchain works and how sensitive information is stored. An often-overlooked aspect of this security is the bypass path that the Bitcoin blockchain uses. In this article, we’ll explain why it’s so important to save your derivative path along with your paper wallet seed phrase and provide guidance on how to do it.

What is a bypass path?

A derivative path is a series of operations (public key, script, address) that lead from a genesis block (the first block in the Bitcoin blockchain) to a specific public address. In other words, it’s a way to “derive” or generate new addresses from an existing public address.

Why do you need a bypass path?

If you don’t know your bypass path, you’re at the mercy of someone else who has access to your seed phrase and private key. If they use your seed phrase to create multiple wallets, they can potentially take control of all of your Bitcoin assets. By saving the bypass path along with your paper wallet seed phrase, you can ensure that only one wallet will have access to your funds.

How ​​to Save a Bypass Route

To save a bypass route, follow these steps:

• Generate a New Private Key: Before generating your public address, create a new private key using your computer’s cryptographic library (e.g. OpenSSL). This private key will be used to derive other addresses and keys.

• Create a Script File – Write a script that generates a derived route for each of your public addresses. You can use a programming language like C or Python to generate this script.

• Save the Script as a File: Save the script file with a name that includes your seed phrase (e.g. “seed_phrase.dpk”). This will make it easy to load and verify the bypass route later.

• Create a Paper Wallet Seed Phrase – Generate a new paper wallet seed phrase using your computer’s cryptographic library. Include your seed phrase, public key, and any other relevant information in your seed phrase file.

• Combine the script and seed phrase files: Combine the script file with the seed phrase file to create a single file (such as a .zip file).

Best Practices

• Use a secure method to store your seed phrase and private key, such as a hardware wallet or a secure online storage service.

• Keep your paper wallet seed phrase confidential and do not share it with anyone else.

• Consider using a trusted third party to generate and manage your seed phrase and command path.

Conclusion

Saving your bypass path using your paper wallet seed phrase is essential to protecting your Bitcoin wallet. This will ensure that only one wallet has access to your funds, and protect against unauthorized access. Be sure to use secure data storage practices and consider using a trusted third party to manage your private key and derivation path.