Bitcoin Wallet Architecture | Andheri, Mumbai
Details
# Bitcoin wallets do not contain your bitcoin.
They manage the keys and scripts that allow you to prove ownership of bitcoin locked in the blockchain. Starting with a small amount of cryptographic randomness, a wallet can generate a structured hierarchy of private keys, public keys, addresses, and signing conditions.
In this technical meetup, we will go beneath wallet interfaces and explore how Bitcoin standards transform entropy into a usable self-custody system.
You will learn how mnemonic phrases, elliptic-curve cryptography, hierarchical deterministic wallets, derivation paths, and output descriptors work together to create and manage Bitcoin keys.
## What we’ll cover
- Entropy and wallet seeds: How randomly generated entropy becomes the foundation of a wallet’s key hierarchy and why the quality of that randomness is critical to security.
- Private keys and public keys: How Bitcoin uses elliptic-curve cryptography to derive public keys from private keys, and how digital signatures prove control without revealing the private key.
- Mnemonic phrases and BIP39: How 12, 15, 18, 21, or 24 word recovery phrases encode entropy and include a checksum for backup and recovery.
- Hierarchical deterministic wallets: How standards such as BIP32 allow one seed to generate a large, organized tree of keys and accounts.
- Derivation paths: How paths such as `m/84'/0'/0'/0/0` identify specific keys within a wallet—and how using the wrong path can make funds appear to be missing.
- Extended keys and privacy: What xpubs and other extended keys reveal, why they are useful for watch-only wallets, and how leaking them can compromise transaction privacy.
- Output descriptors: How descriptors provide a clear, human-readable way to define the keys and scripts required to receive and spend Bitcoin.
## WHO'S GUIDING THIS
Bitshala Educators: Builders and educators actively working on Bitcoin FOSS education and open-source tooling.
## WHAT TO EXPECT
- A step-by-step walkthrough of the wallet derivation process
- Practical explanations of BIP32, BIP39, BIP44, and related standards
- Discussion of common wallet, backup, and privacy mistakes
- Beginner-friendly explanations for developers
We will skip generic blockchain introductions and focus directly on how Bitcoin wallets work under the hood.
## IS THIS FOR YOU?
This meetup is a good fit if you:
- Want to understand how a recovery phrase ultimately leads to a Bitcoin address
- Are curious about the relationship between private keys, public keys, addresses, and signatures
- Want to understand what wallet libraries do behind the scenes
- Think about security in terms of entropy, key exposure, and probability
- Are moving from web development toward Bitcoin or self-custody engineering
- Want to read and understand Bitcoin wallet-related standards
You do not need advanced cryptography experience. Familiarity with basic programming concepts is helpful, along with an interest in understanding the mathematics and standards behind Bitcoin wallets.
To connect with Mumbai Bitcoin Community, join the Signal group
## About Bitshala
Bitshala is a Bitcoin-focused education initiative where we help developers, designers, and curious builders learn by doing. We run cohorts, clubs, workshops, a hackerspace, and community programs that make it easier for people to explore, contribute to, and build on Bitcoin. Our focus is on hands-on learning, proof-of-work, and growing alongside a community of people who care about open technology, design, and the future of money.
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