What Is a BIP-39 Standard?
BIP-39 (Bitcoin Improvement Proposal 39) is a standard that describes the implementation of a mnemonic code or seed phrase to generate a deterministic wallet. It specifies the use of a list of 2048 English words to create a human-readable backup.
This standardization allows wallets from different providers to be interoperable, meaning a wallet can be recovered using the same seed phrase across various compatible software.
Glossar
Seed Phrase
Genesis ⎊ Within the context of cryptocurrency, options trading, and financial derivatives, a seed phrase represents the cryptographic bedrock underpinning wallet security and asset control.
Human-Readable
Precision ⎊ Human-Readable data presentation within cryptocurrency, options trading, and financial derivatives necessitates a focus on minimizing ambiguity for informed decision-making, particularly given the inherent complexities of these instruments.
Mnemonic Code
Derivation ⎊ A mnemonic code, within cryptocurrency, options trading, and financial derivatives, represents a systematically generated string of characters used for deterministic wallet creation and private key management.
BIP-39
Phrase ⎊ BIP-39, formally known as the BIP-39 mnemonic code, represents a standardized set of 12 to 24 words derived from a specific list of 2048 words, facilitating the generation of deterministic wallet keys across various cryptocurrency platforms.