# What Is a BIP-39 Standard? ⎊ Path

**Published:** 2025-12-04
**Author:** Greeks.live
**Categories:** Path

---

## 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.

- [How Does a Hierarchical Deterministic (HD) Wallet Improve Key Management?](https://learn.greeks.live/path/how-does-a-hierarchical-deterministic-hd-wallet-improve-key-management/)

- [What Is the Role of a Seed Phrase (Or Recovery Phrase)?](https://learn.greeks.live/path/what-is-the-role-of-a-seed-phrase-or-recovery-phrase/)

- [What Is the Purpose of the ‘Passphrase’ in a BIP-39 Seed Phrase?](https://learn.greeks.live/path/what-is-the-purpose-of-the-passphrase-in-a-bip-39-seed-phrase/)

- [How Is a Private Key Typically Represented (E.g. Format)?](https://learn.greeks.live/path/how-is-a-private-key-typically-represented-e-g-format/)

- [What Is the Relationship between a Private Key and a Seed Phrase?](https://learn.greeks.live/path/what-is-the-relationship-between-a-private-key-and-a-seed-phrase/)

- [What Is a “Seed Phrase” (Or Recovery Phrase) and How Is It Used?](https://learn.greeks.live/path/what-is-a-seed-phrase-or-recovery-phrase-and-how-is-it-used/)

- [How Does a “Seed Phrase” Relate to the Generation of the Initial Private Key?](https://learn.greeks.live/path/how-does-a-seed-phrase-relate-to-the-generation-of-the-initial-private-key/)

- [How Does a Hierarchical Deterministic (HD) Wallet Utilize the Seed Phrase?](https://learn.greeks.live/path/how-does-a-hierarchical-deterministic-hd-wallet-utilize-the-seed-phrase/)

## Glossar

### [Seed Phrase](https://learn.greeks.live/area/seed-phrase/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/human-readable/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/mnemonic-code/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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](https://learn.greeks.live/area/bip-39/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)

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.

## Discover More

### [What Is a 'Perpetual Swap' and How Does It Differ from a Standard Option?](https://learn.greeks.live/path/what-is-a-perpetual-swap-and-how-does-it-differ-from-a-standard-option/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is a 'Perpetual Swap' and How Does It Differ from a Standard Option?](https://learn.greeks.live/wp-content/uploads/2025/10/Precision-Engineering-Visualization-of-Decentralized-Finance-Automated-Market-Maker-Mechanism-Dynamics.webp)

A perpetual swap is a futures-like contract with no expiration; an option has a fixed expiration and grants a right.

### [What Is the Difference between Impermanent Loss and a Standard Market Loss on a Held Asset?](https://learn.greeks.live/path/what-is-the-difference-between-impermanent-loss-and-a-standard-market-loss-on-a-held-asset/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Difference between Impermanent Loss and a Standard Market Loss on a Held Asset?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Ledger-Tokenization-Construct-Bifurcation-High-Frequency-Arbitrage-Mechanism-Visualization.webp)

Market loss is direct value reduction; IL is an opportunity cost relative to a simple hold strategy due to ratio divergence.

### [How Is a 'Perpetual Futures Contract' Different from a Standard Futures Contract in Crypto?](https://learn.greeks.live/path/how-is-a-perpetual-futures-contract-different-from-a-standard-futures-contract-in-crypto/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Is a 'Perpetual Futures Contract' Different from a Standard Futures Contract in Crypto?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Finance-Protocol-Governance-Token-Staking-Mechanism-Convergence-High-Frequency-Trading-Node.webp)

Perpetual futures have no expiration date and use a 'Funding Rate' mechanism to anchor the price to the spot market.

### [Can a Quantum Computer Break the Security of a Standard Hash-Based Commit-Reveal Scheme?](https://learn.greeks.live/path/can-a-quantum-computer-break-the-security-of-a-standard-hash-based-commit-reveal-scheme/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![Can a Quantum Computer Break the Security of a Standard Hash-Based Commit-Reveal Scheme?](https://learn.greeks.live/wp-content/uploads/2025/10/Decentralized-Autonomous-Organization-Governance-Token-Volatility-Surface-Visualized-Through-Analog-Compass-Metaphor.webp)

No, quantum computers do not break hash functions; security can be maintained by doubling the hash size to remain quantum-resistant.

### [What Are the Limitations of the ERC-20 Standard?](https://learn.greeks.live/path/what-are-the-limitations-of-the-erc-20-standard/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Are the Limitations of the ERC-20 Standard?](https://learn.greeks.live/wp-content/uploads/2025/10/Two-Planar-Blades-Intersecting-Supporting-Spherical-Assets-Across-Volatility-Surfaces.webp)

Requires a two-step approval process and risks permanent loss if tokens are sent to a wrong contract address.

### [What Is the Purpose of the BIP32 Standard?](https://learn.greeks.live/path/what-is-the-purpose-of-the-bip32-standard/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Purpose of the BIP32 Standard?](https://learn.greeks.live/wp-content/uploads/2025/10/Futuristic-Vehicle-Canopy-Design-Analogous-to-Saturnian-Ring-Structures-in-Decentralized-Finance-Architecture.webp)

It defines the standardized structure and algorithm for Hierarchical Deterministic (HD) wallets, ensuring interoperability.

### [What Is the Main Advantage of Using a Synthetic Future over a Standard Futures Contract for Hedging?](https://learn.greeks.live/path/what-is-the-main-advantage-of-using-a-synthetic-future-over-a-standard-futures-contract-for-hedging/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Main Advantage of Using a Synthetic Future over a Standard Futures Contract for Hedging?](https://learn.greeks.live/wp-content/uploads/2025/10/Abstract-Visualization-of-Cross-Hedging-Structures-in-Non-Linear-Crypto-Derivatives-Pricing-Surfaces.webp)

It offers greater flexibility, customization of strike prices, and the ability to exploit mispricing based on put-call parity.

### [How Does the "Mark Price" Used in Perpetual Futures Differ from a Standard Oracle Price Feed?](https://learn.greeks.live/path/how-does-the-mark-price-used-in-perpetual-futures-differ-from-a-standard-oracle-price-feed/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![How Does the "Mark Price" Used in Perpetual Futures Differ from a Standard Oracle Price Feed?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Entanglement-Visualization-of-Cross-Margin-Liquidation-Breaching-Synthetic-Asset-Collateralization.webp)

Mark price is a smoothed, calculated price based on the oracle's spot price and contract funding rate TWAP, used for safe liquidations.

### [What Is the Standard or Ideal Length for a Team's Vesting Schedule in Crypto?](https://learn.greeks.live/path/what-is-the-standard-or-ideal-length-for-a-teams-vesting-schedule-in-crypto/?utm_source=crypto.greeks.live&utm_medium=referral&utm_campaign=satellite)
![What Is the Standard or Ideal Length for a Team's Vesting Schedule in Crypto?](https://learn.greeks.live/wp-content/uploads/2025/10/Quantum-Lattice-Bifurcation-in-Decentralized-Finance-Option-Hedging-Mechanisms.webp)

Ideal is a one-year cliff followed by a two-to-four-year linear vest for long-term commitment.

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**Original URL:** https://learn.greeks.live/learn/what-is-a-bip-39-standard/
