Model 07 · Security

The Recovery Phrase Machine

How twelve words can rebuild an entire wallet.

Intermediate≈ 10 min

Explanation level

How to use this model

How to use this modelWhat you see, what you can touch, what changes, what to take away

What am I looking at?

A vertical sequence of cryptographic mechanisms: entropy, checksum, mnemonic encoding, optional passphrase, seed derivation, hierarchical key derivation, wallet recovery.

What can I touch?

  • Inspect educational entropy
  • Observe checksum construction
  • Explore word indexing
  • Toggle a demonstration passphrase

What happens when I change something?

Switch on a demonstration passphrase and the same twelve words lead to a completely different seed, different keys and different addresses.

What should I understand afterwards?

Explain why anyone with your recovery phrase controls your bitcoin.

Understand why a recovery phrase matters.

A master key that can cut every other key.

After this you can

  • Explain why anyone with your recovery phrase controls your bitcoin.

Open the model in its own window · works offline once loaded

Audio guide Listen while you watch (optional)

Nothing plays until you press Play. The narration below is the same text, to read at your own pace. Each step brings its mechanism into focus in the model; the voice is not timed to the animations.

  1. This guide explains how twelve ordinary words can back up a whole wallet. Everything shown here uses public test examples. Never type your own recovery phrase into any website, including this one.

  2. It all begins with a long random number, like flipping a coin one hundred and twenty eight times. Real wallets take this randomness from the device.

  3. The machine takes a fingerprint of that number and keeps a small piece of it. This checksum works like a spell checker for the words.

  4. The bits are cut into twelve pieces, and each piece picks a word from a fixed list of two thousand and forty eight words. Words are far easier to write down correctly than bits.

  5. You can add an optional passphrase. The same words with a different passphrase open a completely different wallet. If you forget it, the words alone will not bring your coins back.

  6. Next, the words and passphrase are pressed together two thousand and forty-eight times. The result is the seed, the master secret from which every key grows.

  7. From the seed grows a tree of keys, branch by branch. The same path always leads to the same key, which is why one backup covers them all.

  8. Type the same words into another compatible wallet, with the same passphrase if you used one, and it rebuilds the same keys and addresses. That is why the words must be kept secret and safe, offline.

Tutor Ask a question, or let the tutor show you around

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    Common mix-ups

    Myth: The passphrase is the same as the wallet app's password.
    In fact: A BIP39 passphrase changes the derived seed; an app password only encrypts local storage.

    Concepts in this model

    Helpful to know first

    Next recommended

    Model 08 · SecurityAnatomy of a Signing DeviceWhy the screen on the device is the one you trust.

    Part of these learning paths