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Secure Seed Phrases and Passphrases in Zano

A seed phrase (also known as a recovery phrase or mnemonic phrase) is a set of words generated by your wallet that gives you access to the funds associated with that wallet. In Zano, a seed phrase consists of 24 to 26 words chosen from a standardized list of 1626 words. This phrase is all you need to recover your funds if you lose access to your wallet.

A passphrase is an additional layer of security that can be added to your seed phrase. When used together, the seed phrase and passphrase create a two-factor authentication system for accessing your wallet. Here’s a detailed explanation of how a seed phrase secured with a passphrase works:

Seed Phrase​

Generation​

  • When you create a new wallet, the wallet software generates a large random number.
  • This number is then converted into a sequence of words using a standardized deterministic algorithm.
  • The sequence of words (seed phrase) is displayed to you. It’s crucial to write it down and keep it secure, as anyone with access to this phrase can control your funds.

Function​

  • The seed phrase is a human-readable representation of your private keys. It can be used to regenerate your wallet and access your funds.
  • It serves as a backup. If your device or file is lost, stolen, or damaged, you can use the seed phrase to restore your wallet on another device.

Passphrase​

Adding a Passphrase​

  • When setting up your wallet, you have the option to add an additional passphrase (in Zano it is called Secured Seed).
  • This passphrase can be any string of characters you choose. Unlike the seed phrase, which is generated by the wallet, the passphrase is chosen by you.

Security Enhancement​

  • The passphrase is combined with the seed phrase to create a new, more secure key. This new key is used to generate your wallet’s addresses and private keys.
  • Without the passphrase, even if someone obtains your seed phrase, they won’t be able to access your funds.

Usage​

  • Every time you restore your wallet, you will need to enter both the seed phrase and the passphrase.
  • If you forget the passphrase, you won’t be able to access your wallet, even with the seed phrase. Therefore, it’s essential to remember or securely store the passphrase.

Benefits​

  • Enhanced Security: The passphrase acts as a second factor of authentication, making it significantly harder for someone to steal your funds.
  • Privacy: Even if someone sees your seed phrase, they cannot access your wallet without the passphrase.

Risks​

  • Loss of Passphrase: If you forget or lose the passphrase, you will be permanently locked out of your wallet.
  • Complexity: Managing an additional passphrase can be cumbersome and may lead to user errors if not handled properly.