Academy > Security FAQ

What is a secret / seed phrase and how does it work?

What is a secret / seed phrase?

  • A seed phrase, also known as a mnemonic phrase or recovery phrase, is a set of words that can be used to recover or restore access to a cryptocurrency wallet.
  • When you create a cryptocurrency wallet, you are typically provided with a seed phrase consisting of 12, 18, or 24 words. You should write down and keep this seed phrase safe and secure, as it can be used to restore access to your wallet in case you lose your login credentials or your device.
  • The seed phrase is generated by a cryptographic algorithm that uses a random number generator to create a unique set of words. These words are chosen from a pre-defined list of words, and the order of the words is important. Each word represents a number, and the combination of these numbers is used to derive the private keys for your wallet.

How does it work?

  •  A seed phrase consists of a series of words, typically 12, 18, or 24 in number. These words are generated by a cryptographic algorithm that uses a random number generator to create a unique set of words. The algorithm ensures that the words are random and not predictable.
  • The seed phrase is used as input to a process called key derivation, which generates a private key for your cryptocurrency wallet. The key derivation process uses the seed phrase to generate a series of private keys, each of which is mathematically linked to the seed phrase.
  • Each private key is then used to generate a public key, which is the address that you can use to receive cryptocurrency. The public key can be shared with anyone who wants to send you cryptocurrency.
  • To spend cryptocurrency from your wallet, you need to sign a transaction with your private key. When you sign a transaction, the wallet software uses your private key to generate a digital signature, which proves that you are the owner of the cryptocurrency and that you have authorized the transaction.
  • If you lose access to your wallet, you can use the seed phrase to regenerate your private keys and regain access to your cryptocurrency. This is possible because the seed phrase is used to derive the private keys, so as long as you have the seed phrase, you can always regenerate your private keys and access your funds.

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