If you own any cryptocurrency, you probably know that you need a wallet to store and manage your funds. But do you know how your wallet actually works? And more importantly, do you know how to keep your crypto safe from hackers and thieves?
In this blog post, we will explain how secret recovery phrases work and why they are essential for crypto security. We will also give you some tips on how to create and store your secret recovery phrase safely.
What is a secret recovery phrase?
A secret recovery phrase, also known as a seed phrase or mnemonic, is a series of words generated by your cryptocurrency wallet that give you access to the crypto associated with that wallet. It is used to sign transactions, claim ownership of a wallet address, and recover a wallet if it gets lost or damaged.
The secret recovery phrase is your secret master seed that generates all your wallet’s addresses and private keys. It is important to keep your secret recovery phrase safe and not store it as an unencrypted digital copy.
How does a secret recovery phrase work?
To understand how a secret recovery phrase works, we need to understand some basic concepts of cryptography and blockchain.
Every address on the blockchain has a unique number, a public key, and it can only be unlocked if you know another unique number, a private key. If I had blockchain address 1 and you guessed that the private key that unlocks it is 7, then you now control all of my crypto. But of course, guessing anyone's unique private keys is considered impossible, because we're not just picking from single-digit numbers. The total space that we're picking from is 2^160, which is so large it's actually quite hard to comprehend. The best comparison that I could come up with is if you wanted to count every grain of sand on earth, you'd only need 2^60. So yeah, big numbers.
To make things easier for us mere mortals, we invented the secret recovery phrase, which takes our big random number and translates it to a bunch of random words. They're not that random, in total there are only 4,096 possible words in the phrase vocabulary, but you can order them in many different ways. How many different ways? Well, it's 2^132, which is a lot smaller than the true total address space, but that's good enough for most people. For even higher security, some wallets allow you to generate phrases that are 18 or even 24 words long. With that many words, the total possible combinations are 2^198 and 2^264 respectively.
This secret recovery phrase, which can also be converted back to a number, known as a seed integer, generates all the key pairs (public keys, addresses, and private keys) used in the wallet. This means that you can use the same secret recovery phrase to access your funds on different devices or platforms, as long as they support the same standard. The most common standard for secret recovery phrases is BIP39, which stands for Bitcoin Improvement Proposal 39. It defines a list of 2,048 words that can be used for generating secret recovery phrases.
How to create and store a secret recovery phrase?
Most cryptocurrency wallets will generate a secret recovery phrase for you when you create a new wallet. They will also ask you to write it down on a piece of paper and store it somewhere safe. This is very important, because if you lose your secret recovery phrase, you will lose access to your funds forever. There is no way to recover a lost secret recovery phrase, not even by the wallet provider or the blockchain network.
Here’s are some tips on how to create and store a secret recovery phrase securely:
- Write it down on a piece of paper or a metal plate. Do not store it on your computer, phone, or any online service. Hackers can access your digital devices or accounts and steal your secret recovery phrase.
- Keep it in a safe place, away from fire, water, or any other potential damage. You can also use a fireproof and waterproof container or a safety deposit box.
- Do not share it with anyone. Anyone who knows your secret recovery phrase can access and transfer your funds. The wallet provider or the blockchain network will never ask you for your secret recovery phrase. If anyone or any website asks you to share it, they are trying to scam you.
- Make a backup copy. In case you lose or damage your original secret recovery phrase, you can use the backup to restore your wallet. Make sure to store the backup in a different location than the original, and follow the same security precautions.
Conclusion
A secret recovery phrase is a powerful tool that gives you full control and ownership of your crypto assets. It also comes with great responsibility, as you need to protect it from loss or theft. By following the best practices for creating and storing your secret recovery phrase, you can ensure the security and accessibility of your funds. Remember, your secret recovery phrase is your key to your crypto. Keep it safe and secure.