A seed phrase is also referred to as a mnemonic, backup seed, or seed recovery phrase. This stands for a string of words that your crypto wallet generates in order to give you access and without it, you couldn’t use the tokens stored in your wallet.
To get a better illustration, picture your wallet as your crypto password manager and the seed phrase as the master password. As long as your seed phrase is in your possession, you can access your wallet and your crypto. Even in a worst-case scenario, like if you delete or lose your wallet, the seed phrase will help you recover it.
The Basics of Seed Phrase
The idea of self-sovereignty is among the fundamental principles of cryptocurrency. In other words, you have access to your tokens without having to confirm your identity. Also, you shouldn’t be obliged to rely on any institution to keep or manage them.
As you may already know, the technology behind crypto is referred to as the blockchain. Its purpose is to both store and secure your tokens by means of a peer-to-peer network of computers scattered across the globe.
There is one question popping up, though. How can the blockchain know which tokens are yours? Well, it utilizes algorithmically generated codes that only the crypto owner has. When you create a crypto wallet for the very first time, it generates a series of simple words. This is your seed phrase.
Additionally, the seed is used to generate a private key without which you couldn’t transfer your crypto. Unlike the private key, which is a mix of digits and letters, a seed phrase is a string of 12–24 everyday words such as energy, computer, army, void, fortunate, etc. The reason for this is the fact that the human brain is better at memorizing long strings of words rather than numbers (just think about your lengthy passwords).
Source: Tutto Crypto
A few notes to remember:
- It is essential that you take care of your seed phrase,, if anyone gets hold of it, you could lose all your tokens.
- If you happen to lose access to your crypto wallet or delete it, you can return it only with a seed phrase.
- You should not create your own seed phrase.
How a Seed Phrase Works
Your seed phrase is automatically generated during the process of setting up a crypto wallet. It is a representation of a lengthy series of random numbers which your wallet uses to create your private key.
However, seed phrases are formed in a series of words, so you can remember more easily. Still, don’t rely on your memory only for storing the seed phrase, as you might forget it when you most need it.
Every seed phrase is taken from a list of 2048 simple words. The idea of a seed phrase originates from the Bitcoin Improvement Proposal (BIP39) in 2013 which is a standard for a “deterministic wallet” — the majority of wallets used today. A seed phrase is supposed to control all private keys in a wallet.
Since the English language wordlist for this standard includes 2048 words, the potential combinations for the phrase which contains only 12 random words would be 2048^12 = 2^132. Therefore, the seed phrase would have 132 bits of security.
Not all the data in a BIP39 seed phrase is random, the real security of a 12-word seed phrase isn’t 132-bit but 128 bits. This equals Ethereum private keys, so it is considered safe enough.
Seed Phrase Vs. Private Key
The difference is fairly straightforward. A private key enables you to transfer your crypto. It is algorithmically generated from a long series of digits represented by.
A seed phrase allows you to access your wallet and the private keys you may store in it. If your wallet is your password manager, then your seed phrase is a master password. It allows you access all the tokens you have in your wallet.
Storing and keeping your seed phrase not only from hackers but also from phishing attacks and losing is of utmost importance.
How to Store Your Seed Phrase
There are numerous strategies to store your seed phrases safely. Which you will choose depends on how many tokens you have and whether you prefer security or convenience.
One extremely secure way to store your seed phrase is to divide it into several parts and then store it in deposit boxes in various locations. However, you should make sure that you have an extra one in case something happens to any of the locations or boxes.
The next approach is more popular.. Writeyour seed phrase on several pieces of paper, then store copies in more than one secure location.
So long as you have your seed phrase, you have full control over your tokens. Even if you happen to lose your hardware wallet or a phone with your software wallet, your tokens aren’t gone. The only thing you need to do is enter your phrase in another wallet.
What If You Lose Your Phrase?
In case you lose copies of your seed phrase won’t have access to your tokens. They will be safe on the blockchain, but you won’t be able to access them.
Therefore, keep your seed phrase secure. If you lose it, you will lose access to your crypto as well.
The Bottom Line
A seed or mnemonic phrase is a mix of words you use to access your crypto wallet. It was introduced with the BIP39 standard in order to make it easier for users to backup their crypto wallets. Typically, a seed phrase consists of 12-24 arbitrary English words.
Should you ever lose your wallet, you can recover your funds using the seed phrase. It is not crypto-specific, so it can be used to retrieve entire portfolios of tokens. But if you ever lose your phrase, you won’t be able to access your wallet. For that reason, it is crucial to take care of the seed phrase and store it securely.
Disclaimer: For information purposes only. Not investment or financial advice. Seek professional advice. Digital assets involve risk. Do your own research.
