What is BIP-39?

Your seed phrase is either 12 or 24 words. These words will have been randomly given to you out of a list of 2048 words. 

 

What is BIP-39?

BIP-39 (short for Bitcoin Improvement Proposal 39) is a standard used in the world of cryptocurrencies, particularly for the creation of a set of words (called a mnemonic phrase or seed phrase) that can be used to generate a secure and memorable representation of a cryptographic key. This standard is essential for making the handling of cryptographic keys easier and more user-friendly.

Why Was BIP-39 Created?

Cryptographic keys are essential for interacting with cryptocurrencies. They are used to sign transactions and access funds. Traditionally, these keys are long and complex strings of characters, which are difficult to remember and manage. BIP-39 was created to simplify this process by converting these complex keys into a set of easily memorable words.

How BIP-39 Works

  1. Entropy Generation:

    • Entropy is the randomness collected by a computer to generate cryptographic keys. In BIP-39, entropy can be a randomly generated number with a length of 128 to 256 bits.

  2. Mnemonic Generation:

    • This entropy is then divided into sections and processed to create a list of words from a predefined list of 2048 words. The number of words generated depends on the length of the entropy. For example, 128 bits of entropy will generate a 12-word mnemonic, while 256 bits will generate a 24-word mnemonic.

  3. Checksum Addition:

    • A checksum is added to the entropy to ensure that the mnemonic phrase is valid and hasn't been altered. The checksum is a short hash of the entropy added to the end of the mnemonic phrase.

  4. Word List:

    • The predefined list of 2048 words is designed to be easy to remember, distinct, and not easily confused with each other. The mnemonic generated from this list is language-specific, with popular languages including English, Spanish, and Chinese.

  5. Seed Generation:

    • The mnemonic phrase can be converted back into a binary seed. This seed is used to generate cryptographic keys through a process called hashing, ensuring that the same mnemonic will always produce the same keys.

 

Advantages of BIP-39

  1. Ease of Use:

    • It is much easier for users to remember a set of words than a long string of random characters.

  2. Portability:

    • The mnemonic phrase can be written down or memorized, making it easy to transport securely.

  3. Backup and Recovery:

    • If a user loses their device or wallet, they can recover their cryptocurrencies using the mnemonic phrase.

  4. Interoperability:

    • Since BIP-39 is a widely accepted standard, many cryptocurrency wallets support it. This means users can import their mnemonic phrase into any compatible wallet.

Security Considerations

  1. Mnemonic Security:

    • The mnemonic phrase should be kept secure and private. If someone else gains access to it, they can access the associated cryptocurrencies.

  2. Phishing Risks:

    • Users should be cautious of phishing attempts that may trick them into revealing their mnemonic phrase.

  3. Proper Storage:

    • Writing down the mnemonic phrase and storing it in a safe place is crucial. Storing it digitally without encryption can be risky due to potential hacks.

In Summary

BIP-39 is a vital standard in the cryptocurrency world that enhances the usability and security of cryptographic keys. By converting complex keys into memorable sets of words, it makes managing and securing digital assets more accessible for users while maintaining a high level of security. Understanding and using BIP-39 properly is essential for anyone involved in cryptocurrency.

 

The complete list of BIP-39 words:

https://github.com/bitcoin/bips/blob/master/bip-0039/english.txt#L1