BIP-46 proposal: Multi Signature and Multi Coin HD Wallet in One BIP32 Derivation Path

A new bitcoin improvement protocol was proposed on the bitcoin-dev mailing list.

I have written a new BIP describing a BIP32 derivation path that supports a single or multi-signature and multi-coin wallet from a single master seed. It combines BIP44 and BIP45 and adds in a self-describing structure in the derivation path for multiple multi-sig combinations within the single wallet along with an extended public key export file format for public key distribution between parties. I can particularly see this being useful for multiple Lightning Network 2of2 accounts for different payment channels.

BIP 46 proposes a derivation path that aims to improve wallet portability, it defines a way to derive multiple coin types, single and multiple signatories from a single master seed. The proposal only works with SegWit addresses, other address formats will need a different proposal. BIP46 wallets combine the best of BIB 44 and BIP 45 wallets. There is a catch though when importing the master seed: the discovery process is a little slower as it walks different derivation paths, and for multi-signature wallets it requires extended public keys of the cosigners.

Altcoins supported by BIP 46 are the same list supported by BIP44.

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