Importance of securing cryptocurrency secret phrases
Overview of multiple shares for seed protection
Comparison of Shamir's Secret Sharing and 24 words seed split
Steps to set up multiple shares for seed backup
Selecting the right storage locations and diversifying storage methods
Ensuring tamper-evident storage and involving trusted parties
Regularly monitoring shares and storage locations
Securing your cryptocurrency seed is a crucial aspect of maintaining the safety of your digital assets. One method to enhance this protection is by using multiple shares for your seed backup. In this guide, we will explore the concept of multiple shares and provide practical advice on implementing this strategy to safeguard your crypto seed against loss and theft.
Understanding Crypto Seed Phrase and Its Importance
A crypto seed, also known as a seed phrase, mnemonic seed, secret phrase or recovery seed, is a series of words that allows you to recover your cryptocurrency wallet in case of device failure or loss. These seed phrases are generated by your hardware or software wallets and act as the ultimate backup for your digital assets. Securing your seed phrase is vital, as anyone with access to it can potentially gain control of your cryptocurrencies.
Multiple Shares for Seed Protection: An Overview
Using multiple shares for seed protection involves distributing your secret phrase into several parts, called shares, with each part stored separately. Then, a a recovery threshold is defined. The threshold is the number of shares you need to regain access to the full seed. For example, 2-of-3 or 3-of-5, etc...
This method offers several benefits, including increased security and reduced risk of total seed loss. There are different techniques to create multiple shares, each with its own advantages in terms of security and ease of use.
Shamir's Secret Sharing - The Most Advanced
Shamir's Secret Sharing (SSS) is a cryptographic method for splitting a secret (in this case, your seed phrase) into multiple parts. The secret can only be reconstructed when a specified number of parts are combined. This approach offers robust security, as an attacker would need to compromise multiple shares to gain access to your seed phrase. SSS allows to create up to 16 shares and define any threshold.
24 Words Seed Split - The Simplest
The 24 words seed split is another method for creating a 2-of-3 shares setup from a seed phrase. This technique involves dividing your 24-word seed phrase into three parts, each containing 16 words, with 8 words overlapping between each part. While this method is simpler than Shamir's Secret Sharing, it may not offer the same cryptographic security.
Implementing Multiple Shares for Optimal Seed Security
To set up multiple shares for your seed backup, follow these steps:
Choose a method for splitting your seed, such as Shamir's Secret Sharing or the 24 words seed split.
Create the shares according to the chosen method.
Securely store each share in separate locations.
All these steps are explained in all Hodlr's products step-by-step guided protocols.
Selecting the Right Storage Locations
Geographic dispersion of your seed shares is essential for reducing the risk of loss due to theft, natural disasters, or other unforeseen events. Consider storing shares in various locations, such as:
A family member's or friend's house
A safe deposit box at a bank
A secure storage facility
Diversifying Storage Methods
Using different storage methods for each share can further enhance security. Some options include:
A personal safe or lockbox
A hidden compartment or disguised storage container
Buried in a waterproof container in your garden
Ensuring Tamper-Evident Storage
Tamper-evident storage methods can help you detect unauthorised access to your shares. For example, you can use tamper-evident bags, seals, or containers to store your seed shares.
All Hodlr's products come with uniquely numbered tamper-evident security seals.
Involving Trusted Parties
Sharing a portion of your seed with trusted individuals can provide an additional layer of security if you have an accident, for example. However, ensure that the method you use for dividing the seed provides a high enough encryption level for each share, so no single party can access your funds.
We strongly suggest using Shamir's Secret Sharing if you need to give a share to a trusted party.
Regularly Monitoring Shares and Storage Locations
Periodically check your shares and storage conditions to ensure their integrity. Check your tamper-evident seals regularly. Update your storage security measures as needed.
Protecting your crypto seed against loss and theft using multiple shares is an effective strategy for safeguarding your digital assets. By implementing the methods discussed in this guide, you can create a robust security system for your seed phrase, reducing the risk of unauthorised access and potential loss.
Remember to choose the right splitting method for your needs, diversify storage locations and methods, involve trusted parties in case you have an accident, and regularly monitor your shares to ensure their safety. By taking these precautions, you can secure your digital assets and enjoy peace of mind, knowing that your crypto seed is well-protected against loss and theft.