The seed or Seed consists of a series of words, usually there are 12 words and can be more, if they wanted to, that when introduced in the order established within a Wallet replenishes an address or a series of addresses that are associated with a seed or Seed. In short, a seed or Seed is a standard way of coding the keys of your Wallet that can be remembered in a more friendly way.
The recovery seed consists of a combination of words placed in a specific order that gives us the possibility of recovering private keys, in case our device is lost or damaged. In this way there is the ability to recover access to cryptocurrencies. Obviously you have to remember the PIN and the word combination of the recovery seed very well.
In the previous article entitled What are the public and private keys of a wallet? Mention is made of the security that exists when making transactions with cryptocurrencies, keeping them secure and safeguarding the identity and assets of the user is vital and important. Hence, when talking about Seed or seed, we refer to public and private keys, which consist of a series of characters in alphanumeric order that are difficult to memorize.
We see then that a notable improvement that was made with Bitcoin was the implementation of the seed or Seed. With the seed it is much easier to memorize, since it is about twelve everyday words that are easy to remember and the sum of all of them in the established and correct order, is what corresponds to the private key.
What is a wallet?
Wallet translates as a kind of wallet or purse, and resembles what is called a checking account at a commercial bank. The difference is that with the Wallet we can have total control of the virtual currencies or cryptocurrency that we want to save, and in addition to that you can send or receive money freely and without intermediaries. In conclusion, the Wallets are basic computer programs that allow you to guard Bitcoin and any cryptocurrency, and likewise, connect you to the Bitcoin network through the internet and thus authorize monetary transactions. In addition to the above, it is important to know and distinguish the two types of Wallets based on the internet exposure that has the keys.
Also known as hot wallets, they are the ones that always remain online, they are always connected to the blockchain or Blockchain through the internet and an electronic device, which allows access to them from anywhere in the network, without being tied to a specific device. Hot Wallets can be online or computer, then we explain a little more each type.
Hot wallet Online
They are those Wallets that offer some web pages for cryptocurrencies to be stored. Through this option we delegate the custody of the lost key to said company and it will depend on the security and reserve of the same, that our funds are in good custody, so it is very important to evaluate well the one we choose, which has all the Possible regulations to secure our investment.
Computer and/or Smartphone
Typically, cryptocurrencies have their own software that they offer as their Wallet. Through this Wallet, all responsibility for the custody and custody of the funds of the coins is exclusive to the user. On the other hand, there are a variety of Smartphone applications that act as Wallet, allowing payments to be made in establishments that support cryptocurrencies. Important to keep the private key very well.
What are the Cold Wallets?
Or cold wallets, which do not remain connected to the internet and therefore not to the Blockchain network. These Cold Wallets are useful for protecting funds that do not need to be moved for a certain period of time or that do not want to be put at risk. It is a way to prevent attacks, accidental or wrong deletions or formatting of computer without backup. Next, we will see the best known types of Cold Wallets.
Physical or Hardware
They are special USB drives for storing or storing cryptocurrencies. The best known are those developed by Ledger, which provides the guarantee that the coins are very secure, since also of the private key, it allows you to program a PIN to ensure that nobody without authorization, access the coins.
This type of cold wallet usually occurs in ATMs that allow you to exchange fiat money for cryptocurrencies, they usually have a QR code to access cryptocurrencies, either through the Smartphone or the computer, but the custody of cryptocurrencies does not belong neither to the computer nor to the Smartphone but to the cashier and its backup is in the paper or receipt that it delivers after each transaction.
What do you think about this topic? Did you know the use of the seed in a wallet?
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