Glossary entry
Wallet Entropy
walletsWhere the randomness behind a wallet key comes from, why a self-chosen recovery phrase can be guessed offline, and why the device generates it for you.
Definition
Entropy is the amount of genuine unpredictability in the random material a wallet uses to create a key, and it is the only thing standing between an address and anyone who wants to guess it. A recovery phrase is a readable encoding of that material, which is why the phrase is generated by the wallet rather than chosen by its owner: human-selected words, dates and quotations occupy a tiny and searchable region of the space, and an attacker can derive keys from candidate phrases offline, check each resulting address against the public ledger, and take whatever holds a balance, without touching any system of yours. Two things follow. Do not invent your own phrase, reorder a generated one, or swap out words you dislike, because every such change is a step towards a pattern someone else can reproduce. And a wallet is only as good as the randomness it draws on, which is one reason hardware devices generate keys inside a chip built for the purpose rather than in general-purpose software.
Next