A structured path that tells an HD wallet how to derive account, change and address keys from a master seed.
Derivation path is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Derivation path should be evaluated against a concrete threat model: what is protected, from whom, for how long and at what operational cost. A design may remove one dependency while introducing another, so custody, privacy and verification must be judged as a complete system.
Understanding Derivation path helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
For the clearest picture, read this entry together with HD wallet, BIP 39, Address gap limit. The reverse links also lead from HD wallet, Extended public key, Address gap limit, BIP85 deterministic entropy.
Linked to related atlas coordinates
Grounded in a source record
Explains function and trade-offs
Part of the open Bitcoin knowledge graph