What Is a Seed Phrase and Why It Matters

What Is a Seed Phrase?

A seed phrase (also called a recovery phrase) is a list of words that gives full access to a cryptocurrency wallet.

It is the master key to your wallet.

Anyone who has your seed phrase can:

restore your wallet
access your funds
move assets without your permission

There is no password reset, no support desk, and no recovery option if it is lost or compromised.

How a Seed Phrase Works

Generation

When you create a self-custodial wallet, a seed phrase is generated automatically.

It usually consists of:

12 or 24 words
selected from a standardized list (BIP-39)
generated randomly using cryptographic entropy

These words mathematically derive:

your private keys
your public wallet addresses

Every wallet has one unique seed phrase. The same phrase will always generate the same keys and addresses.

Backup

After generation, the wallet shows the seed phrase once and asks you to back it up.

This step is critical.

If your phone, computer, or browser is lost or damaged, the seed phrase is the only way to recover your wallet.

Recovery

If you lose access to your wallet device, you can restore everything by entering the seed phrase into a compatible wallet.

This will:

recreate your private keys
restore your addresses
return access to all assets

No blockchain interaction is needed — the seed phrase rebuilds the wallet locally using pure mathematics.

Why Seed Phrases Matter

Full Ownership

With self-custody, you own your assets directly.

There is:

no bank
no exchange
no intermediary

The seed phrase is what gives you that ownership. It is the difference between holding an IOU and holding the actual asset.

Wallet Independence

Seed phrases follow a standard (BIP-39).

This means you can:

switch wallet apps
change devices
migrate platforms

without losing access to your funds — as long as you have the seed phrase.

Your assets are not locked to any app or company.

No Single Point of Failure

Even if:

your phone breaks
your laptop is stolen
an app is deleted

your assets are safe as long as your seed phrase is safe.

The blockchain does not care what device you use. It only responds to valid signatures — and your seed phrase generates those signatures.

The Security Reality

A seed phrase is powerful — and dangerous if mishandled.

If someone gets access to it:

funds can be drained instantly
transactions cannot be reversed
there is no way to prove theft or recover assets

This is why protecting your seed phrase is more important than protecting your device.

Your phone can be replaced. Your seed phrase cannot.

Best Practices for Seed Phrase Security

Do

| Practice | Why It Matters | |----------|----------------| | Store it offline | Digital storage can be hacked, synced, or leaked | | Store it privately | Use a safe, lockbox, or safety deposit box | | Create backups | Keep multiple copies in separate secure locations | | Test recovery | Ensure you know how to restore a wallet using the phrase | | Use durable materials | Paper degrades; consider metal backup plates |

Don't

| Mistake | Risk | |---------|------| | Sharing with anyone | No legitimate service will ever ask for your seed phrase | | Storing digitally | Screenshots, notes apps, and cloud storage are vulnerable | | Taking photos | Photos sync to cloud services and can be recovered from devices | | Relying on memory | Memory fails; written backups don't | | Entering on suspicious sites | Phishing attacks target seed phrases specifically |

Common Seed Phrase Scams

Scammers constantly try to obtain seed phrases. Be aware of:

Fake support messages claiming you need to "verify" your wallet
Phishing websites that mimic legitimate wallet interfaces
Malware that monitors clipboard for seed phrase patterns
Social engineering via DMs asking for "help" with your wallet

No legitimate wallet, exchange, or support team will ever ask for your seed phrase.

If someone asks for it, they are trying to steal your funds.

How This Applies to Briz

Briz is built for self-custodial, onchain finance.

That means:

you control your wallet
you control your keys
you are responsible for your seed phrase

Briz cannot:

reset it
recover it
access it

This is not a limitation — it is the foundation of real ownership. When you use Briz, you are not trusting a company to hold your assets. You are holding them yourself.

Summary

A seed phrase is not just a backup.

It is:

your wallet
your access
your responsibility

| If you... | Then... | |-----------|---------| | Protect your seed phrase | Your assets are safe regardless of device | | Lose your seed phrase | Your assets are permanently inaccessible | | Share your seed phrase | Your assets can be stolen instantly |

Treat it like the keys to a vault containing everything you own.

Protect it accordingly.

What Is a Seed Phrase and Why It Matters