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I was reading a post Deterministic Wallets, Their Advantages and their Understated Flaws by Vitalik Buterin. There he mentions

although you certainly can securely hand out child keys with no risk to the parent key, and you can hand out master public keys with no risk to the master private key, you cannot do both at the same time.

I could not understand all the technical functions he used to explain his words.But he considered a security threat.The cleaver way to overcome this was:

making three hierarchical BIP32 wallets, with every address being a 2-of-3 multisignature address between the three wallets down some particular child key derivation path

So. are HD wallets without MultiSig functionality are risk to security in any case?

  • The post was written back in Nov,2013 but are the points significant today also? – Prashant Prabhakar Singh Oct 7 '16 at 7:26
  • Yes. HD wallets in both bitcoin and ethereum are widely used. Jaxx, metamask, ledger, and more all use HD wallets. Somethings have changed with bip44 and some of the other bips, but I would certainly consider it relevant. – tayvano Oct 7 '16 at 10:23
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Well,I guess secured in the sense that they ensure secure transactions.And have the ability to keep your funds safe.

  • secure in the sense as I mentioned. As per Vitalik we cann't expose Mater publick key and Child keys at same time. – Prashant Prabhakar Singh Oct 10 '16 at 10:57

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