Hierarchically Deterministic (HD) Wallets

A wallet which uses a master private key to generate a number of private and public key pairs with their corresponding blockchain addresses.

In this way, it is possible to use multiple addresses for receiving and spending cryptocurrency, without ever losing track of them. All you need to know is the master private key.

HW Wallets can be used for privacy purpose, so to make it more difficult to trace the source and the destination of a transaction. It can also be used within an organization with a private key for each department. The financial supervisor of the company can use the master private key to track all transactions performed by the private keys which are part of its hierarchy.