Definition
A seed phrase, also called a recovery phrase or mnemonic phrase, is a sequence of words used by many wallets to encode information from which wallet keys can be derived. BIP-39 defines a common scheme using a word list, entropy, and a checksum, with familiar lengths such as twelve or twenty-four words. Not every wallet uses the same mnemonic standard or recovery procedure. Some arrangements also use an optional passphrase, which changes the derived wallet rather than acting as a conventional password-reset credential. Anyone possessing sufficient recovery information may be able to recreate spending authority on another device. The phrase should therefore be treated as a high-value secret, not an ordinary support code. Recovery can additionally depend on derivation paths, script types, or multisignature configuration. A valid word sequence does not by itself prove that a particular wallet contains the expected addresses or funds.
Source references
References accompanying this glossary entry:
Educational reference, not financial advice. See our financial disclaimer and editorial policy.