Avoiding xpub+derivation reuse across wallets, in a UX-friendly manner

In discussing the structure of single signature (sig) setups, it's emphasized that maintaining or slightly adjusting the current standard to focus on purpose, account, and coin type derivation is beneficial. This approach suggests that for single sig configurations, the elements of purpose and account should remain unhardened to streamline the process. The simplicity here is crucial, ensuring that there's a direct and uncomplicated method for utilizing single sigs which aligns with the existing standards and practices within the cryptocurrency domain.

On the topic of multi-signature (multisig) arrangements, the conversation shifts towards the importance of backing up the descriptor. It's pointed out that incorporating Unix time in the multisig setup could enhance the backup process, provided that the derivation remains unhardened. This recommendation stems from the need to reduce friction when integrating with hardware wallets. A common issue faced by users—reusing extended public keys (xpubs) due to the complexity introduced by hardened derivation—can be mitigated through this suggested approach. Adopting unhardened derivation in conjunction with Unix time not only simplifies the backup process but also aligns with the recommended practices for securing multisig configurations, thereby enhancing user experience and security.