> For the complete documentation index, see [llms.txt](https://hub.bsvblockchain.org/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://hub.bsvblockchain.org/higher-learning/bsv-academy/how-spv-supports-legal-compliance-in-blockchain-technology/legal-compliance-through-verifiable-proof/technical-implementation-of-selective-disclosure.md).
# Technical Implementation of Selective Disclosure
The technical foundation for selective disclosure rests on **hierarchical deterministic (HD) key derivation**. Rather than using a single key pair for all transactions, businesses derive unique key pairs for each transaction or counterparty relationship. This derivation follows deterministic algorithms (such as BIP32), allowing the business to prove key ownership without exposing the master key.
When a regulator requests information about transactions with a specific counterparty, the business can reveal:
1. The derived keys used for transactions with that counterparty
2. The SPV proofs for those specific transactions
3. Associated metadata (invoices, contracts, etc.)
The regulator can verify that the business controls these keys (through cryptographic signature challenges), validate the SPV proofs against the blockchain, and confirm the transaction details. Critically, this process reveals nothing about the business's transactions with other counterparties—those transactions use different derived keys that remain undisclosed.
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