August 5, 2023 · 3 min
As the popularity of cryptocurrencies continues to grow, so does the need for secure storage solutions for private keys and seed phrases. One such solution is the Shamir Backup, which uses a technique called Shamir's Secret Sharing to split a seed phrase into multiple pieces, allowing for secure storage across multiple locations.
Shamir's Secret Sharing is a cryptographic algorithm developed by Adi Shamir in 1979. The algorithm allows for the sharing of a secret among a group of individuals, without any one individual having access to the entire secret.
The algorithm works by breaking the secret into multiple pieces, called shares, and distributing them among the group. The secret can then be reconstructed by combining a minimum number of shares, known as the threshold.
In the world of cryptocurrencies, seed phrases are used to generate private keys, which are necessary for accessing and managing funds. Losing a seed phrase can result in the loss of access to funds, which is why secure storage is essential.
Many crypto hardware wallets, such as Trezor and Ledger, now offer Shamir Backup as a feature. This allows users to split their seed phrase into multiple shares, which can be stored in different physical locations, such as a safe or a safety deposit box.
To use Shamir Backup, a user first selects the number of shares they want to create and the threshold required to reconstruct the seed phrase. For example, a user may choose to create five shares, with a threshold of three.
The Shamir's Secret Sharing algorithm then generates the shares, which are essentially random strings of characters. The user can then store these shares in different physical locations, such as a safe, a safety deposit box, or with trusted friends or family members.
To reconstruct the seed phrase, the user must have a minimum number of shares, known as the threshold. In the example above, the user would need at least three of the five shares to reconstruct the seed phrase.
Overall, Shamir Backup is a powerful tool for ensuring the secure storage of seed phrases and private keys. By using Shamir's Secret Sharing algorithm, users can split their seed phrase into multiple shares, allowing for secure storage across multiple physical locations. As the crypto scene continues to grow, solutions like Shamir Backup will become increasingly important for ensuring the security of digital assets.
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