Seed Tag Definition
A Seed Tag is a backup recovery phrase for a cryptocurrency wallet. It is typically made up of a series of randomized words that act as a safety net for accessing a wallet and its stored crypto assets should the user lose access.
Seed Tag Key Points
- It’s a set of random words serving to protect and recover your crypto wallet.
- Seed Tags are the last line of defense for lost wallets/access.
- It’s usually 12 to 24 words long, dependent on the wallet’s specifics.
What is a Seed Tag
A Seed Tag is a type of cryptographic security measure used in the protection and recovery of cryptocurrency wallets. These “tags” are essentially a series of words generated at random when a wallet is created. They act as a key or backup password, allowing the user to regain access to their coins, tokens or digital assets if their wallet is lost, deleted, or otherwise unreachable.
Why a Seed Tag is Used
A Seed Tag is used because of the decentralized and anonymous nature of cryptocurrency and blockchain. Losing access to your crypto wallet can mean complete loss of the assets, because unlike traditional banks, there are no recovery options or help desks to turn to. To counteract this, seed tags function as a recovery solution.
When to Use a Seed Tag
A Seed Tag is used at the moment of creating a crypto wallet and should be kept in a safe place and never shared with anyone. In the event that you lose access to your wallet – perhaps due to forgetting the password, losing the relevant hardware, or a technical malfunction – the seed tag allows you to restore your wallet and regain your assets.
Where to Store a Seed Tag
A Seed Tag, being the crucial backup to access your crypto assets, should be stored extremely securely. It should be kept in a place safe from destruction, theft, or accidental discovery. Some possible storage solutions include secure offline storage, cryptographic hardware modules, or even physical paper copies stored in safe deposit boxes.
Who Can Use a Seed Tag
Anyone who has initiated the creation of a crypto wallet can use a seed tag — it becomes available at the moment a wallet is created. It’s essential that the user alone knows and secures this seed tag as its possession allows complete access to the contained assets.
How a Seed Tag Works
A Seed Tag works by serving as a sort of master key for the wallet. During the wallet creation process, the system generates a unique set of random words (the Seed Tag), which are then linked to the wallet. If the wallet ever needs to be recovered, the user enters the exact seed tag which then lets the system recreate the wallet details allowing regained access.
