Post
Topic
Board Bitcoin Technical Support
Re: Multisig derivation paths and xpubs
by
aesthete2022
on 29/06/2023, 10:58:20 UTC
Quote
Perhaps.
If those Nested SegWit extended public keys are derived from your master private key with m/49'/0'/0' path,
But used it in a MultiSig setup and provided the standard path of m/48'/0'/0'/1' (BIP48 - Nested SegWit), then your hardware wallet will derive a different xpub key than what you've provided.

What does the descriptor looks like? You can edit the extended public keys for privacy reasons.
BTW, in Sparrow, you can't use the standard derivation path of BIP49 in a MultiSig setup by design.

I think the fatal flaw in my understanding was that I thought the xpubs were generated solely by the hardware devices and were independent of the derivation path, and that the derivation path specified the receive and change keys from the child xpubs of the devices. That's strange, I currently use BIP 49 in a collaborative multisig 3 of 5 setup, and imported it into Sparrow with no issue. I was also able to form a 2 of 3 setup using the same xpubs and derivation path in Sparrow. 

So, given I imported two xpubs from a BIP 49 setup and one from a BIP 84 wallet, then used the derivation path BIP 48 to derive all the receive and change keys, have I just made a huge spaghetti soup that I won't be able to sign?