Parity Signer v4 has introduced the Hierarchical Deterministic Key Derivation (HDKD) feature for Substrate networks. This article explains how to use this feature.
Identity is the starting point for generating accounts. Identity is bound to a seed (aka. mnemonic or seed phrase). The identity itself does not have any network affiliation. For Substrate networks, generating a new accounts means entering a derivation path and choosing a network. With this feature, you can manage as many accounts as needed with just one seed phrase safely stored.
Key generation also refers to accounts creation, with your created Identity:
Create New DerivationButton.
To generate a custom path without any prefix path:
Add Network Accounton the network list screen.
Create Custom Pathbutton on the bottom.
Paths also refer to the Chaincodes which described in BIP32, though it is different from BIP-32 style:
Users are able to create any combination of hard derivation with
// and/or soft derivation with
The encoded string are limited to 32 Bytes.
For technical information about the soft and hard derivations on Substrate, please refer to introduction here.