How Seed Phrases Work in Digital Wallets

In Web3, ownership works very differently than it does on the traditional internet. Instead of logging in with a username and password, users control their digital assets through digital wallets. At the center of that control is something called a seed phrase. Understanding what a seed phrase is, and why it must stay private, is essential for anyone using Web3.

What Is a Seed Phrase?

A seed phrase (also called a recovery phrase or mnemonic phrase) is a series of 12, 18, or 24 random words generated when you create a digital wallet.

Example:

river clock galaxy maple stone ladder bottle story ...

While it may look simple, this list of words is actually a human-readable representation of your wallet’s master cryptographic key. From this single phrase, a wallet can mathematically generate your public digital wallet address, your private key, and access to all digital assets held in that wallet. In other words, your seed phrase is your wallet.

Why Seed Phrases Exist in Web3

Web3 is designed to remove centralized intermediaries. There is no “forgot password” button, no customer support desk, and no company holding a backup of your account. The seed phrase exists so that you can restore your digital wallet on a new device. They also allow access to other digital wallets, making your digital identity and assets portable. This way, you maintain full ownership and self-custody, but it also places responsibility squarely on them.

Never Share Your Seed Phrase

Anyone who has your seed phrase has total control over your digital wallet. This puts you at risk. Full control means that they can:

• Transfer your digital assets
• Move or sell NFTs
• Interact with dApps and DeFi as if they were you
• Empty your digital wallet permanently and anonymously

There is no approval, alert, or undo. Blockchain transactions are final. Because of this, no legitimate service will ever ask for your seed phrase. If someone asks for your seed phrase, it is always a scam.

Best Practices for Protecting a Seed Phrase

To stay safe, users should:

• Write the seed phrase down offline
• Store it in a secure physical location
• Never store it in screenshots, cloud storage, or email
• Never type it into websites or share it with anyone
• Consider using hardware wallets or secure backups for long-term storage

The safest seed phrase is one that only you have ever seen.

For more tips on how to protect yourself on Web3, visit .locker’s Web3 Security and Safety section of our Help Center.