Much like a physical wallet, someone can lose access to their crypto wallet. Most of the time, consumers have to use a wallet.dat file to regain access, importing it to another platform. It is far from the easiest way to gain access, since it is not successful for consumers that completely lose the wallet itself. However, mnemonic seeds eliminate the user’s need to keep a backup file at all.
Using data files to maintain the connection to the wallet is effective, but it is very complicated. In fact, most people that are new to virtual wallets do not even set one of these files up, despite the fact that it was previously the only way to get the information back again. However, people who constantly use the wallets have not had an issue with the process before, since it is so typical.
Despite the lack of issue, developers sought to make this recovery process easier. There is been multiple wallet devices that have started using mnemonic seeds to regain access, whether the user is on their desktop, smartphone, or other device. Basically, this seed requires that the user put a certain group of words in order to restore the wallet. It is not exclusive to restoring wallets, which is part of the appeal.
Blockchain.info is one of the biggest services to incorporate this type of security, requiring that consumers use a pass phrase during the original registration. With mnemonic seed security, consumers will be able to restore their wallet at any time, even if they lose their original password and login details. Optimally, the user should write down the pass phrase somewhere off of their device, ensuring that they will always be able to access it.
Due to the efficacy of mnemonic seeds, it is no wonder that the majority of cryptocurrency wallets use them to preserve the privacy of the funds in investors’ accounts. Some hardware includes that method as well, though every wallet is unique.
Mnemonic seeds are not new to the crypto world. In 2013, BIP-0032 introduced them, citing how important it was to get the words in the right order to regain access. If someone wants security of their fiat and crypto currency in their wallet, it is absolutely essential to choose an enabled wallet properly. With the mnemonic seeds, no one else is able to get access to the wallet except the person who set it up in the first place.