A Key Derivation Function (KDF) is a process used to generate one or more secret keys from a base key, often combined with additional data such as a salt or other inputs. This function ensures that even if the same base key is used multiple times, different derived keys can be produced.KDFs enhance security by allowing the use of less sensitive inputs to create stronger keys. They are often used in wallet software, where a master key can generate multiple public addresses while keeping the master key secure and private.Common KDFs include PBKDF2, bcrypt, and Argon2. These functions typically incorporate computationally expensive operations to deter brute-force attacks, making it difficult for an attacker to recover the original key from the derived keys.By utilizing KDFs, users can manage multiple keys safely while maintaining a high level of cryptographic strength, essential for protecting digital assets and ensuring secure transactions.