Seed phrase / Secret Recovery Phrase

The Bitcoin “Seed Phrase” or “Secret Recovery Phrase” refers to a 12 or 24-word list that stores all of the information required to recover Bitcoin funds on the leading layer 1 chain. This type of mnemonic wallet technology was initially created for the Bitcoin blockchain in the Bitcoin Improvement Proposal #39 (BIP39). BIP39 includes a word list of 2048 English langue words, with each word corresponding to a fixed, predetermined value. When 24 words are randomly chosen from this list and combined in a sequence, this generates enough entropy to protect your bitcoin wallet securely. Many modern software and hardware cryptocurrency wallets have implemented this “secret recovery phrase” scheme to find a balance between generating highly random passwords while being human-friendly. These word-based password lists can never be shared with anybody and are strictly for backup purposes. If a person gets control of your word list, they have 100% control over your bitcoin funds.