Explained: Benefits and drawbacks of a crypto wallet passphrase
Passphrases allow hardware wallet users to create a string of characters associated with a seed phrase that extends the security of a traditional private key. Unlike a password that unlocks a recovery secret, a passphrase is part of the seed phrase itself. Most modern crypto hardware wallets generate a 12 or 24-word seed phrase based on the 2,048 words in Bitcoin’s BIP-39 dictionary. This Bitcoin Improvement Proposal or ‘BIP’ standardized the method for backing up the cryptographic, non-human readable, 64 hexadecimal digit private key into a human-readable seed phrase of 12 or 24 words. To be clear, a passphrase doesn’t unlock or back up a seed phrase. It’s not akin to a password. For this reason, it’s commonly known as the ’25 th word’ of a seed phrase. Because a passphrase is an advanced option for a sophisticated user, its specific benefits and drawbacks are worth considering . Explained: Why the Feds couldn’t secure a crypto hardwar...