HD Wallet (Hierarchical Deterministic)

An HD wallet, short for hierarchical deterministic wallet, generates an unlimited tree of key pairs from a single master seed. That seed is normally shown to you as a recovery phrase of 12 or 24 words, so one backup restores every account and address the wallet has ever produced. The standards behind it, BIP-32, BIP-39 and BIP-44, are shared by most modern wallets, which is why a phrase created in one app can usually be restored in another. Because everything descends from one secret, anyone who obtains the seed controls all derived accounts, and there is no way to rotate it without moving funds to a new wallet.