The cryptoverse is full of niche-specific jargon that can be confusing, especially if you are new to the space. One of the terms that could leave you scratching your head is “seed phrase”.
What Is A Seed Phrase?
A seed phrase, also known as a recovery phrase, is a group of randomized words automatically generated by a crypto wallet when a user is setting it up. It not only allows the person to access a wallet if they forget their password but also enables them to restore their funds in case a wallet is deleted or lost.
What You Need To Know About Seed Phrases
Each seed phrase is drawn from a list of 2,048 English words called the BIP39 standard. A recovery phrase can contain 12 to 24 words, such as:
add planet melody typical unique toddler idea success happy frequent alternative black
If a seed phrase consists of 12 words like the one in the example, the number of potential combinations would equal 2048^12 = 2^132, so the phrase is supposed to have 132 bits of security.
However, some of the data in a BIP39 phrase is not random, so the real security level of a 12-word BIP39 seed phrase is 128 bits. This means it has similar strength to Bitcoin and Ethereum private keys, which makes it sufficiently secure.
Note that the seed phrase definition is not the same as that of a private key, despite these two terms being related. A private key is a string of letters and numbers used to verify transactions and prove cryptocurrency ownership. A recovery phrase, on the other hand, is a master password to the user’s wallet and the private keys they may keep in it.
Thus, storing a seed phrase securely is of utmost importance. One way of doing it is by dividing the phrase into several parts and keeping them in separate safe locations (e.g. deposit boxes) in written form. Remember that losing your seed phrase means you won’t have access to your tokens anymore.
