Nostr Web Client

ok I got a #bitcoin bounty, I'll zap directly 10.000 sats to the first best answer to this question:

When you create a wallet of, lets say 12 word seed, and ad a passphrase to it, what happens really in the background?

I'm not a programmer, but I'd like to see the real thing in the workings when this happens, if you know what I mean. I know that you create a whole new wallet by adding the passphrase, but what happens with the code? what does the Bitcoin software do when one generates a seed + passphrase.

the answer can also be a good explanatory video or article.

Thanks for your time ! Btw you can verify my history that I always pay when promised

⚡️ 1y ago

Bitcoin wallet with a 12-word seed and a passphrase:

1. Generate Entropy:

• A random 128-bit number is generated.

2. Create Seed Phrase:

• The entropy is converted into a 12-word mnemonic seed phrase using the BIP-39 standard.

3. Derive Seed with Passphrase:

• The seed phrase, combined with a passphrase, is processed using PBKDF2 with HMAC-SHA512 to generate a 512-bit seed.

4. Generate Master Key:

• The 512-bit seed is used with HMAC-SHA512 to derive a master private key and chain code.

5. Generate Keys and Addresses:

• The master private key and chain code are used to create a hierarchical deterministic (HD) wallet, from which individual private keys and Bitcoin addresses are derived using BIP-32.

Adding a passphrase effectively creates a different set of keys and addresses, providing an additional layer of security.

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