What is a seed phrase and why is it important?

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A seed phrase can be confusing and you might be wondering what a seed phrase looks like and maybe how it is created. The seed phrase is generated by a cryptocurrency wallet and the user cannot modify it in any way.

The generated words are derived from a list of 2048 words. So, how many words is a seed phrase? A seed phrase consists of a long string consisting of a group of random words.

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The words on an opening sentence are simplified for the user to remember, unlike the case where the opening sentence consists of long numbers or special characters.

The recovery phrase consists of 12 to 24 words such as energy, away or open. To avoid errors, these randomly generated words do not contain pairs such as “man” and “men” in the same seed phrase. Bitcoin Improvement Proposal-(BIP)-39 in 2013 introduced such phrases and established a standard for deterministic wallets. Here is an imaginary seed sentence of 12 words: cry, planet, loose, typical, humanity, toddler, fear, difficult, happy, never, alternative, remorse.

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A seed phrase manages all private keys associated with a deterministic wallet. The BIP-39 proposal makes large wallets cross-compatible, allowing the users to load the recovery phrase to a new BIP-39 compliant wallet to access the funds when lost or if you want to switch wallets.

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