DeFi
Seed phrase
The words are generated from a standardized wordlist so that any compatible wallet software can turn the same phrase back into the same private keys — the phrase is the master backup, not a password to a specific app.
For example, if a phone with a wallet app is lost or damaged, entering the correct seed phrase into a new wallet installation restores every address and balance tied to that phrase, on any device.
A common mistake is storing a seed phrase digitally — as a photo, a cloud note, or in a password manager connected to the internet — which exposes it to the same kinds of hacks a hot wallet faces, defeating the entire purpose of an offline backup.
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