# Luffa Wallet Derived Accounts

Luffa Derived Account (Derived Account) is based on the main account (Root Account) through the encryption algorithm generated by the sub-account system to achieve multi-level account management. Its design follows Web3 security principles, supports decoupling of master private key and sub-accounts, and ensures that the control of assets is centralized in the hands of users. The points of derived accounts: Flexible scalability: Users can dynamically generate unlimited sub-accounts through the master account, adapting to multi-chain asset management (e.g., ETH, BTC, etc.) and avoiding the operational cost of repeated wallet creation.

Enhanced integrity: Sub-accounts have independent privileges, even if a single sub-account is stolen, the master account and other sub-account assets are still protected, reducing the risk of reusing private keys.

Derived accounts support basic transaction capabilities: support for regular operations such as transferring and receiving money from sub-accounts to meet the needs of daily asset flows.

However, luffa's current version of derived accounts has the following limitations.

1. Recovery after uninstallation: the current version needs to re-execute the derivation process in order to reuse historical sub-accounts (regular backup of mnemonics is recommended).
2. Insufficient cross-scenario compatibility: sub-accounts do not support participation in social protocol interactions such as airdrops and pledge voting for the time being.


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