Derivation paths & accounts

A derivation path specifies how addresses and keys are generated from a seed or mnemonic phrase. This allows you to manage multiple addresses (or "accounts") under the same wallet, across every supported chain.

For example, Ethereum commonly uses m/44'/60'/0'/0/0 for the first address. If you want the second address, you'd use m/44'/60'/0'/0/1, and so on.

Wallet type required

Multiple address derivation is relevant only for HD wallets (phrase, seed, xpriv, or xpub). If your wallet is from a private key or public key, you cannot derive multiple addresses — only index 0 is valid.

What is a derivation path?

A derivation path is instructions telling your wallet how to "walk" through a hierarchical key tree. Each segment corresponds to a level of derivation. By changing the final index, you can create new addresses — all from the same root seed.

For example, a Bitcoin wallet using the BIP84 standard (native SegWit) might use:

m/84'/0'/0'/0/0

• 84' — BIP84 (native SegWit / bech32)
• 0' — Bitcoin coin type (SLIP-44)
• 0' — First account
• 0 — External chain (receiving addresses)
• 0 — First receiving address

By incrementing the final index (m/84'/0'/0'/0/1, m/84'/0'/0'/0/2, etc.), the wallet deterministically generates new SegWit addresses — all from the same seed.

Using the index option

In ChainGate v2, you derive different addresses using the index option on the connector:

import { importWallet, ChainGate } from 'chaingate'

const wallet = importWallet({ phrase: 'some bip39 phrase ...' })
const cg = new ChainGate()

const bitcoin = cg.connect(cg.networks.bitcoin, wallet)

// Default address (index 0)
const address0 = await bitcoin.address()
console.log('Address #0:', address0)

// Second address (index 1)
const address1 = await bitcoin.address({ index: 1 })
console.log('Address #1:', address1)

// Third address (index 2)
const address2 = await bitcoin.address({ index: 2 })
console.log('Address #2:', address2)

The index is appended to the network's default derivation path. For Bitcoin segwit, { index: 0 } resolves to m/84'/0'/0'/0/0, { index: 1 } to m/84'/0'/0'/0/1, etc.

UTXO address types

For UTXO networks, you can also choose the address type, which selects a different derivation path:

// Segwit address (default for Bitcoin)
const segwitAddr = await bitcoin.address({ addressType: 'segwit' })

// Taproot address
const taprootAddr = await bitcoin.address({ addressType: 'taproot' })

// Legacy address
const legacyAddr = await bitcoin.address({ addressType: 'legacy' })

// Combine address type and index
const taproot3 = await bitcoin.address({ addressType: 'taproot', index: 3 })

Available address types per network

Network	Available types	Default
Bitcoin	segwit, taproot, legacy	segwit
Litecoin	segwit, taproot, legacy	segwit
Dogecoin	legacy	legacy
Bitcoin Cash	cashaddr, legacy	cashaddr
Bitcoin Testnet	segwit, taproot, legacy	segwit
Ethereum	eoa	eoa

Custom derivation paths

You can override the derivation path entirely:

const address = await bitcoin.address({
  derivationPath: "m/44'/0'/0'/0",
  index: 5
})
// Resolves to m/44'/0'/0'/0/5

Operations at a specific index

All connector methods support the same options, so you can check balances, transfer, and view history at any index:

// Balance at index 2
const { confirmed } = await bitcoin.addressBalance({ index: 2 })

// Transfer from index 1
const amount = cg.networks.bitcoin.amount('0.001')
const tx = await bitcoin.transfer(amount, 'bc1q...', { index: 1 })

// History at index 3
const history = await bitcoin.addressHistory(undefined, { index: 3 })

Why use different paths?

• Multiple addresses: Assign different addresses for receiving payments, accounting separation, or organizational purposes.
• Privacy: Using a fresh address for each transaction improves privacy on UTXO networks.
• Multi-account support: Some protocols or dApps expect multiple derivation paths for advanced features.

Key points

• HD wallets only: Phrase, seed, xpriv, and xpub wallets support multiple derivation indices.
• Simple API: Use { index } to derive addresses — no manual path construction needed.
• Address types: UTXO networks support segwit, taproot, legacy (and cashaddr for Bitcoin Cash).
• Consistent: All connector methods (address(), addressBalance(), transfer(), addressHistory()) accept the same options.
• Default paths: ChainGate uses each network's standard derivation path (e.g., m/84'/0'/0'/0 for Bitcoin segwit, m/44'/60'/0'/0 for Ethereum).
• Private/public key wallets: Only index 0 is valid since there's a single key.