Good question! Professionals in the industry often discuss wallets in the context of
BIP32 (also known as Bitcoin Improvement Proposal), which underlies the process of how wallets are generated from mnemonics.
To put it simply, you can refer to this TypeScript file to understand how we can generate a wallet address:
As you can see,
pbkdf2Sha512 appears to be a combination of PBKDF2 (Password-Based Key Derivation Function 2) and Sha512, both of which are cryptographic methods.