Hierarchical Deterministic Wallets

That’s a mouthful.

It’s also the future of crypto eCommerce.

HD Wallets provide a fool-proof mechanism for trustless crypto eCommerce. Why? Once again, it’s simple:

Unique Wallet Address for every Customer Order.

Let us start by explaining the Deterministic part of HD. Imagine standing somewhere. Anywhere. We’ll call it the starting place. One can argue that each step you take from this ‘Starting Place’ will leave you in a new spot. Well with HD Wallets, your ‘Starting Place’ is called a Master Public Key, and each new spot is a Unique Address. This analogy falls apart after that. If you are in any spot it would be easy to get to other spots near you. Well with HD wallets that is not the case. It is not possible, given one unique address, to figure out other unique addresses related to the starting spot, unless you have the starting spot.

Why is this important? Because given a Starting Spot, any wallet (full-featured or watch-only) can display/transfer your entire balance by looking at every step. This has a multitude of benefits, easier wallet backups, no micro-managing different addresses, less stressful batch transfer of funds to a new wallet.

Cool. But that’s not why HD Wallets are important to trustless eCommerce adoption. This is:

Unique Wallet Address for every Customer Order

You might be thinking, “Hmm, that’s cool nobody will be able to track my total balance and it will be more private for me.”, and you’re right. But that can be accomplished by using a privacy coin. If privacy is truly important to you, you should only be accepting privacy coins.

The real benefit of a Unique Address for every Order is that it enables full-featured trustless payment processing, without the middleman.

The ability to guarantee a cryptocurrency address is unique to an order allows one to view the blockchain for any transactions to that address. If the transaction amount is less than the order amount, we can email the customer indicating they paid but they still have a balance remaining. If the transaction amount is sufficient, we update the order to processing and you and your customer receive a payment-confirmed email.

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