Seed phrases & private keys ā how they work, wallets, chains, and safe storage (mini-lesson)
A private key cryptographically signs transactions and controls funds. A seed phrase (aka recovery phrase) is a human-readable mnemonic that lets you recreate your private keys in an HD wallet. One seed ā many keys (via derivation paths) so one phrase can restore multiple wallets if the wallet supports the same standards/derivation. Never store seeds digitally ā use paper + metal backups, test recovery, and use hardware wallets for savings. (Ledger, Bitcoin Wiki) 1) What is a private key? - A private key is a long secret number used to create digital signatures that authorize blockchain transactions. Whoever has the private key controls the funds on that address. - The public address you share is derived from that private key; private keys must stay secret. (If someone else gets your private key or seed phrase, they can move your funds.) (Bitcoin Wiki) 2) What is a seed phrase (mnemonic) and how does it work? - Most wallets use the BIP-39 standard: it turns cryptographic entropy into a list of 12/18/24 readable words (your āseed phraseā / secret recovery phrase). That single phrase encodes the master seed from which many private keys can be derived. (Ledger, Vault12) - Seed phrases are used by HD (hierarchical deterministic) wallets (BIP-32/BIP-44 family). HD wallets derive a tree of keys from the master seed using derivation paths ā thatās how one seed creates many addresses/accounts. Different derivation schemes (BIP-44, BIP-84, etc.) and coin types affect address format and compatibility. (Learn Me A Bitcoin, Trezor)