3

In exchanges like Binance when a user wants to deposit coins in bitcoin or in other coins, per user receives a unique public key? Do they have to generate pair key private/public key for each user in each coin? Or there is a way that we can have many public key for a special private key and Binance had one private key and unlimited public key related to that?

If anybody have a good reference please let me know or give me description about this subject. thanks.

  • 2
    What you want is an HD wallet. See: BIP32 – chytrik Nov 7 at 21:37
1

In exchanges like Binance when a user wants to deposit coins in bitcoin or in other coins, per user receives a unique public key?Do they have to generate pair key private/public key for each user in each coin?

I suppose they must be using a HD wallet for each users, but since one you send them your coins, everything happen in their back end they can do everything they want with them, especially for coins that dont support HD wallet, they could just generate private key then link them together in one of their database.

Or there is a way that we can have many public key for a special private key and Binance had one private key and unlimited public key related to that?

Yes, this kind of "special private key" is called a Hierarchical Deterministic Wallets and will allow you to generate an infinite amount of private key and so public keys, addresses derivated from a master seed, and so if you know this seed you can link those private keys together

This technology is used in personal wallet software like mobile wallet, but as I said since we dont have access to the back end of exchanges like binance they could use other tactics to organize their users funds.

  • 1
    especially for coins that dont support HD wallet, they could just generate private key then link them together in one of their database. Could you please give me some more details? link together in one of thier, What do you mean? – Hamid Naghipour Nov 7 at 16:30
  • When you want to send or receive bitcoin on an exchange, they dont have to use the UTXO of the previous coins you have send to them, they can use the UTXO of all their users for their balance, you should check the answer to this question bitcoin.stackexchange.com/questions/76174/… – Saxtheowl Nov 7 at 16:51

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.