ZoneBitcoin EditorialWhen it comes to securing your bitcoin holdings, two things are very often confused: the private key and the recovery phrase (also commonly called the "passphrase"). seed phrase").
Although both of these are used to protect your bitcoin, they differ in nature and how they work. In this article, we'll look at the difference between a private key and a passphrase, and their role in protecting your bitcoin.
What is a private key?
When you create a Bitcoin wallet, whether it is a software wallet or a hardware wallet, a private key is systematically assigned to you.
The private key is generated by your wallet and is a random string of letters and numbers. This key is unique to your wallet and is essentially your “password” to access your bitcoins.
The private key is therefore used to authorize bitcoin transactions. When you want to send funds from your wallet, the transaction must be authenticated using your private key. It is this key that ensures that you are the rightful owner of the funds and have the right to transfer them.
The bottom line is that the private key is used to sign transactions and prove ownership of the Bitcoins, while the public key is used to generate a Bitcoin address where funds can be received. These two keys are essential for securing and facilitating transactions on the Bitcoin network.
The problem with private keys
Private keys are extremely sensitive and must be protected with great care. Due to their random nature and their length (usually 256 bits), they are difficult to memorize. It is therefore recommended to store them securely, away from prying eyes.
Software wallets (or “hot wallets”) typically store private keys directly on the host device, which can be a security risk. Hardware wallets (or “cold wallets”), on the other hand, store private keys offline, making them much harder to compromise.
This is the recommended method for storing your bitcoins: Use custodial wallets like Samourai Wallet or BlueWallet which allow you to keep your private keys.
What is a seed phrase?
A passphrase, also called a seed phrase, is a series of random words used as a backup to your cryptocurrency wallet. Unlike private keys, which are random strings of characters, passphrases are made up of specific words, usually chosen from a list of predefined words. Usually these are English words.
Passphrases are typically 12, 18, or 24 words long, depending on industry standards and wallets. Each word in the passphrase is selected from a predefined list of words, often called a “bip39 dictionary.” This list includes thousands of words, each of which represents a unique combination.
The passphrase acts as a backup for your wallet. That’s why it’s called a seed phrase or recovery phrase. If you lose or delete your wallet, you can use this phrase to restore access to your crypto assets. It’s considered the “master key” of your wallet, as it allows you to recover all the associated private keys.
La seed itself does not provide a complete picture of the portfolio and its contents. It is via a cryptographic procedure specific to the “hierarchically deterministic wallet” which translates the seed into a master key, from which all other keys are developed in a “deterministic” order.
Since the seed is a mathematically generated deterministic sequence, it works regardless of wallet type.
Secure use and storage of passphrases
Since speed phrases are essential for your wallet recovery, it is imperative to store them securely. It is recommended to write them down on paper and store them in a safe place protected from physical damage, moisture and fire. Better yet, there are heavy-duty metal plates that are designed specifically to engrave the words of the seed phrase.
It is important to note that passphrases should never be shared with anyone. If someone has access to your passphrase, they can restore your wallet and access your funds. It is therefore essential to keep this information confidential and not disclose it to anyone.
Differences between private keys and speed phrase
Private keys and seed phrases differ in their nature and operation. Here are some of the main differences between the two:
- Structure : Private keys are random strings of characters, while passphrases are made up of words selected from a predefined list.
- Use : Private keys are used to authenticate transactions and access specific accounts, while passphrases are used as a backup to restore access to the entire wallet.
- Storage : Private keys should be stored securely, preferably offline, to avoid compromise. Passphrases must also be stored securely, but they can be written on paper or stored electronically, as long as they are protected with a strong password.
- Range : A private key provides access to a single cryptocurrency account, while a passphrase allows you to retrieve all private keys associated with a wallet.
Conclusion
In conclusion, private keys and seed phrases play essential roles in securing cryptocurrency assets. Private keys are used to authorize transactions and access specific accounts, while passphrases serve as a backup to restore access to the entire wallet. It is crucial to store this information securely and not share it with anyone.
By taking the appropriate steps to protect your private keys and passphrases, you can ensure the security of your bitcoins.
If I understood correctly, the proven keys for HOT WALLETs are sent to us when they are opened, BUT FOR COLD WALLETS, are the private keys stored in the latter and inaccessible? Or am I completely useless?