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Seed Phrase
A seed phrase is a critical element of cryptocurrency security. It can be represented as a series of special words, and it is used for the backup and recovery of crypto wallets. It is sometimes referred to as a recovery phrase, backup code, or mnemonic phrase. Seed phrases are defined by the BIP39 standard, which is implemented by most crypto wallets.
Why a seed phrase is used
One of the reasons crypto transactions are so secure is because they have an encryption key associated with them. Encryption keys are represented by a long string of hexadecimal characters (a mix of letters A through F and numbers zero through nine) that would not be practical to memorize, since they are often 64 characters long. A wallet seed phrase is a simplified version of this, and is a set of words (typically 12, 18, or 24) that can be used to mathematically generate your wallet’s private key. In this way, seed phrases allow people to deal with simple strings for their wallet’s backup or recovery, rather than dealing directly with lengthy encryption keys.
How to generate a seed phrase
You have multiple options for generating your seed phrase. Hardware, software, and desktop wallets can generate a seed phrase for you, or there are methods you can use to generate a series of random numbers that can be converted into a seed phrase. Here are some of the ways you might generate a seed phrase:
- With the Vault12 app
- With a calculator
- With dice
- With software crypto wallets
- With hardware wallets
Essentially these techniques allow you to generate a random list of numbers between 1 and 2048, and you then associate those numbers with the corresponding words from a BIP39 dictionary. It is critical that the list of numbers generated are as random as possible, so that no one can guess or regenerate your seed phrase.
How to access your seed phrase with Vault12
If you backed up your seed phrase with Vault12 Guard, Vault12 does not have access to it. Instead, each of your selected Guardians uses Vault12 Guard to store just a piece of an encrypted form of it. To gain access to your seed phrase backups, you can restore your digital vault with the help of your trusted Guardians.
Related terms
- wallet
- BIP39
- private key
- public key
- encryption
- entropy
- digital vault
Vault12
Vault12 is the pioneer in crypto inheritance and backup. The company was founded in 2015 to provide a way to enable everyday crypto customers to add a legacy contact to their cry[to wallets. The Vault12 Guard solution is blockchain-independent, runs on any mobile device with biometric security, and is available in Apple and Google app stores.
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You will lose your Bitcoin and other crypto when you die...
...unless you set up Crypto Inheritance Management today.
It's simple — if you don't worry about crypto inheritance, nobody else will — not your software or hardware wallet vendors, not your exchanges, and not your wealth managers. So it's up to you to think about how to protect the generational wealth you have created, and reduce the risks around passing that wealth on to your family and heirs. What are the challenges with crypto inheritance?
- Crypto Wallets are difficult to use and do not offer crypto inheritance management. In fact, most of them tell you to write down your seed phrase on a piece of paper, which is practically useless.
- Some people back up their wallet seed phrases or private keys on paper, local devices like hardware wallets or USBs, or in the cloud. All of these options have severe drawbacks that range from hacking to accidental loss to disrupted cloud services.
- Software wallets operate onspecific blockchains, yet your crypto assets span multiple blockchains. For inheritance to work, you must be able to manage inheritance across every blockchain — now and forever.
Crypto Inheritance Management: Get ready today
Vault12 is the pioneer in Crypto Inheritance Management, and offers an easy-to-use and secure method for assigning a legacy contact to your crypto wallets. Vault12 Guard enables you to pass on your wallet seed phrases and private keys for any cryptos including Bitcoin (BTC) and Ethereum (ETH) to future generations. It's designed for everyday people, yet strong enough for Crypto OGs.
This innovative, decentralized system uses a hybrid approach of software fused with the Secure Element of phone devices (the Secure Enclave for iOS devices, and Strongbox for Google devices).
Vault12 Guard enables users to appoint one or more people or mobile devices as Guardians. The designated Guardians are entrusted to collectively protect the user's comprehensive collection of wallet seed phrases and private keys, which are safely stored within a decentralized digital Vault. Nothing is stored on cloud servers or Vault12 servers, and no assets are stored on local devices, making them less of a target.
The decentralized approach reduces points of failure and removes the necessity for regularly revising wallet inventories or modifying instructions for your lawyers (which could lead to privacy breaches). Simply put, Vault12 Guard is the best way to preserve crypto generational wealth.
Take the first step and back up your crypto wallets.
Designed to be used alongside traditional hardware and software crypto wallets, Vault12 Guard helps cryptocurrency owners back up their wallet seed phrases and private keys (assets) without storing anything in the cloud or any single location. This increases protection and decreases the risks of loss. Making sure you have an up to date back up is the first step in crypto inheritance management.
The Vault12 Guard app enables secure decentralized backups and provides inheritance for all your seed phrases and private keys across any blockchain, including Bitcoin, Ethereum, ERC-20, and other crypto wallets.
Note: For anyone unfamiliar with cryptocurrencies, Vault12 refers to wallet seed phrases and private keys as assets, crypto assets, and digital assets. The Vault12 Guard app includes a software wallet that works alongside your digital Vault. The primary purpose of this is to guard your Bitcoin (BTC) or Ethereum (ETH) wallet seed phrases, private keys, and other essential data, now and for future generations.
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