What is Recovery Seed?
Let's find out Recovery Seed meaning, definition in crypto, what is Recovery Seed, and all other detailed facts.
A recovery seed, or a seed phrase, is a cryptographic security code that can be used to unlock or access a cryptocurrency wallet if its owner has lost or forgotten the passwords. The seed is comprised of 12 to 14 random words. It is the final resort to recover the wallet and must therefore be stored securely to ensure it isn’t lost at any point.
If a person owns a cryptocurrency wallet but forgets or loses its password, or if the wallet is stolen, they can use the recovery seed to access the assets and, if needed, transfer them to a different device.
Users are strongly recommended to keep their recovery seeds secure and not share them with anyone. Since the use of the recovery seed does not require you to have physical access to the wallet, malicious parties may leverage it to steal the assets if they know the recovery seed they have is legitimate.
Cryptocurrency wallets are used to gain access to crypto assets. In some cases, they may contain crypto worth millions of dollars. Therefore, such devices require advanced security measures.
Users can add a password and the seed phrase to their account in case of recovery. While this reinforces the safety of their assets, if they lose the password and the seed, or if a malicious party manages to gain access to both, the vulnerability of their crypto assets increases significantly.
There have been rare cases where a cryptocurrency wallet was accessed even after its owner had lost the recovery seed. In 2021, computer engineer Joe Grand was able to hack into a Trezor wallet to help its owners recover cryptocurrency worth over $2 million. However, Trezor representatives have stated that this exploit has since been patched.