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Glossary

Derivation Path

The address-tree coordinate (e.g. `m/44'/60'/0'/0/0`) that picks one specific key out of an HD wallet's deterministic tree of millions.

BIP-32 turns a single seed into an unbounded tree of keys. A derivation path is the route from the root ("m") to a specific leaf. The slashes are tree levels; an apostrophe means "hardened" (only derivable with the parent private key).

BIP-44 standardizes a convention: m / purpose' / coin_type' / account' / change / address_index. The Ethereum path m/44'/60'/0'/0/0 is the first address on the first account on the Ethereum coin. Mistakes in the path are how people "lose" funds that are actually safely sitting at a different leaf.