Keys

Cardano typically uses BIP32 HD private keys. Software implementations of the protocol follow consistent patterns to construct these keys.

Payment keys

• Control spending of ADA
• Used to create Payment Addresses
• Typically derived at HD path of m/1852'/1815'/0'/0/<index>
  • Applications often generate new payment keys when sending and receiving to avoid address reuse for security.

Stake keys

• Control delegation (choosing a stake pool)
• Own the reward address where staking rewards accumulate
• Have permission to withdraw staking rewards
• Include the balance of a linked Payment Address in the staked balance
• Can be linked with multiple Payment Addresses
• Typically derived at HD path of m/1852'/1815'/0'/2/0
  • This derivation path is the same for all addresses within a wallet.

Addresses

Base addresses

• Generated from an underlying Payment Key and Stake Key
  • ADA in these addresses counts towards the staked ADA balance if the Stake Key is active and delegated.
• Supports spending and staking
• Most common wallet address type.

Enterprise address

• Generated from only an underlying Payment Key
  • ADA in these addresses does not count towards staking.

Reward address (Stake Address)

• Is the reward account for staking rewards
• Holds rewards rather than regular ADA UTXOs. Rewards can be withdrawn by spending them into UTXOs.