- Use "recovery code" instead of "mnemonic phrase" or "seed phrase". A
new tipbox describes that mnemonic implies memorization but that's bad
practice. The phrase recovery code is generic enough to apply to a
variety of schemes, including Electrum seed words, BIP38 seed words,
aezeed, and non-phrase schemes like that used in Muun.
- Be clearer about the difference between "wallet" and "wallet
software".
- Mention that restoring from a code doesn't restore labels or
offchain transaction info.
- Warn about re-entering your code into malware / phishing attacks.
lost mobile device, a software bug, or memory corruption. The mnemonic
phrase is based on a common standard and therefore can be restored on
| Electrum
any compatible software or hardware wallet. This allows Alice to try
| nephew dog crane clever quantum crazy purse traffic repeat fruit old clutch
different wallets and also removes any dependency on the software or
hardware maker of the wallet.
| Muun
| LAFV TZUN V27E NU4D WPF4 BRJ4 ELLP BNFL
Of note, when receiving funds to a new mobile wallet for the first time, many wallets will often re-verify that you have securely backed-up your mnemonic phrase. This can range from a simple prompt to requiring the user to manually re-enter the phrase.
|===
[TIP]
====
A recovery code phrase is sometimes called a "mnemonic" or "mnemonic phrase",
which implies you should memorize the phrase, but writing the phrase
down on paper takes less work and tends to be more reliable than most
people's memories. Another alternative name is "seed phrase" because
it provides the input ("seed") to the function which generates all of
a wallet's keys.
====
If something happens to Alice's wallet, she can download a new copy of
her wallet software and enter this recovery code to rebuild the wallet
database of all the onchain transactions she's ever sent or received.
However, recovering from the recovery code will not by itself restore any additional
data Alice entered into her wallet, such as the names she associated
with particular addresses or transactions. Although losing access to
that metadata isn't as important as losing access to money, it can
still be important in its own way. Imagine you need to review an old
bank or credit card statement and the name of every entity you paid (or
who paid you) has been blanked out. To prevent losing metadata, many
wallets provide an additional backup feature beyond recovery codes.
For some wallets, that additional backup feature is even more important
today than it used to be. Many Bitcoin payments are now made using
_offchain_ technology, where not every payment is stored in the public block
chain. This reduces users costs and improves privacy, among other
benefits, but it means that a mechanism like recovery codes that depends on
onchain data can't guarantee recovery of all of a user's bitcoins. For
applications with offchain support, it's important to make frequent
backups of the wallet database.
Of note, when receiving funds to a new mobile wallet for the first time,
many wallets will often re-verify that you have securely backed-up your
recovery code. This can range from a simple prompt to requiring the
user to manually re-enter the code.
[WARNING]
====
Although many legitimate wallets will prompt their user to re-enter
your recovery code, there are also many malware applications that mimic the
design of a wallet, insist you enter your recovery code, and then
relay any entered phrases to the malware developer so they can steal
your funds. This is the equivilent of phishing websites that try to
trick you into giving them your bank passphrase. For most wallet
applications, the only times they will ask for your recovery code are during
the initial set up (before you have received any bitcoins) and during
recovery (after you lost access to your original wallet). If the application
asks for your recovery code any other time, consult with an expert to