What is the difference between a deterministic and non-deterministic wallet?

Deterministic and non-deterministic wallets differ in how they generate and manage private keys:

1. **Deterministic Wallet:**
   - In a deterministic wallet, a single master seed or passphrase is used to generate an entire hierarchy of private keys deterministically. This means that given the same seed, the wallet will always generate the same sequence of private keys.
   - Deterministic wallets follow a specific standard, such as BIP-32 (Hierarchical Deterministic Wallets), BIP-39 (Mnemonic Phrase), and BIP-44 (Multi-Account Hierarchy for Deterministic Wallets), which define the process for deriving keys from the master seed.
   - By backing up and securely storing the master seed or mnemonic phrase, users can recover their entire wallet and all associated private keys, making deterministic wallets convenient for backup and restoration.

2. **Non-Deterministic Wallet:**
   - In a non-deterministic wallet, private keys are generated randomly, typically independently of one another. Each private key is generated separately without any connection to a master seed or passphrase.
   - Non-deterministic wallets do not follow a specific standard for key derivation, and the process for generating private keys may vary between wallet implementations.
   - Backing up a non-deterministic wallet typically involves manually saving each private key individually. If a user loses access to their private keys or wallet file, recovery may be more complex compared to deterministic wallets.

In summary, the key difference between deterministic and non-deterministic wallets lies in their approach to key generation and management. Deterministic wallets use a single master seed or passphrase to derive an entire hierarchy of private keys, offering a more streamlined and convenient backup and recovery process. Non-deterministic wallets, on the other hand, generate private keys independently without a master seed, potentially leading to a less structured backup and recovery process.