A list of keywords comprising 12 to 24 words that helps users access their cryptocurrency wallet.

A seed Phrase is a list of keywords composed of 12 to 24 words depending on the specific blockchain. The keywords for every compatible wallet on a network are sourced from an official database of words. Bitcoin’s keywords, for example, are generated from the Bitcoin Improvement Proposal 39 Wordlist (BIP39). This wordlist is a set of words (collection of a total of 2048 words) regularized for the backup and retrieval of cryptocurrency wallets.

How cryptocurrency users choose to protect their seed phrase significantly affects its security. Nevertheless, all users are encouraged to store this phrase offline because the internet’s security is largely insufficient and vulnerable to the activities of hackers.

A strategy that is implemented to improve the capacity of blocks in the blockchain.

Segmented Witness or SegWit is a strategy that is implemented to improve the capacity of blocks in the blockchain and store transactions. This implementation process is executed by increasing the blockchain’s validation process. Although users initially kicked against this strategy noting that the Bitcoin blockchain might not be able to efficiently handle the growing amount of transactions, it was eventually introduced in 2017.

Currently, SegWit is partly responsible for Bitcoin blockchain’s flexibility. With regards to transactions, the strategy separates a sender’s signature from the rest of the records of the transaction, thereby preventing the receiver from changing the sender’s transaction ID and receiving more than what the sender planned.

An analysis of a company’s database to determine the adequacy of its safety measures.

A security audit is the analysis of a system’s database to determine its overall performance, hinder security infringement, and suggest any necessary changes. This audit is very vital in crypto because any gap in a blockchain network, especially in the system’s components or nodes, can lead to a compromise in the security framework.

Due to the current limitations of digital innovations, a blockchain’s security audit is performed manually. Nevertheless, the method is a great way to ensure transparency, and defeat any security threat and inconsistencies found in the blockchain system database.

Seed Phrase

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