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Understanding Ethereum’s Ways of Generating in Electrum

As a developer, you’ll probably want to understand how Electrum 2.0 and later generates Ethereum addresses using the Brain-Computer Interface (BIP) 0032 specification. In this article, we’ll dive into the derivation paths that Electrum uses to generate these addresses.

What is BIP32?

Before we continue, let’s quickly review what BIP32 is. Brain-Computer Interface (BIP) 0032 is a specification that defines a method for generating Ethereum addresses based on a set of rules and algorithms. It’s an alternative to the traditional Merkle-based address generation method used by Electrum.

BIP0032 Derivation Paths

To generate Ethereum addresses using BIP0032, Electrum uses multiple derivation paths. These paths are defined in the BIP 0032 specification and involve a combination of public keys, cryptographic hashes, and other parameters. Here are some common derivation paths used by Electrum:

• p2sh (private script hash key)

• spv (public script version)

• scriptSig

• scriptPubkey

Electrum’s Derivation Paths

Specifically, Electrum uses the following BIP0032 derivation paths to generate Ethereum addresses:

• p2sh / spv

  

  : This is the common combination that Electrum uses to generate addresses from private or public keys using the p2sh and spv functions.

• scriptSig / scriptPubkey: This path is used to generate addresses based on a transaction signature, which includes the sender’s public key, the transaction hash, and other information.

Code example

To generate an Ethereum address using BIP0032 output paths with Electrum 2.0 or later, you can use the following code as a starting point:

import hashlib
def derive_address(private_key):

Extract the sender's public key from private_key (assuming 32 bytes)
public_key = private_key[:32]

Output the script hash using p2sh and spv functions
script_hash = derive_script_hash(public_key)

Combine the script hash with the transaction signature to generate the address
address = f"{script_hash.hex()}{private_key[32:]}"
return_address
def derive_script_hash(public_key):

Generate a random session key (assuming 16 bytes)
session_key = b'\x00' * 16

Output the script hash from the public key and session key
script_hash = hashlib.sha256(session_key + public_key).digest()
return script_hash.hex()

Load the private key from a file or generate a new one
private_key = b'\x01\x02\x03\x04\x05\x06\x07\x08' 
Replace with your private key

Generate an Ethereum address using BIP0032 output paths
address = output_address(private_key)
print(address) 
Output: a unique Ethereum address (e.g. 0x1234567890abcdef)

Remember that this code is just a starting point and you will have modify it to suit your specific use case. Also, keep in mind that generating Ethereum addresses using BIP0032 derivation paths can be complex and may require additional cryptographic knowledge.

Conclusion

In summary, Electrum 2.0 and later uses a combination of BIP0032 specification derivation paths (p2sh/spv, scriptSig/scriptPubkey) to generate Ethereum addresses internally. While the code may seem proprietary, once you understand how these derivation paths work, you can build your own applications that use the core Ethereum protocol.