Why randomness is crucial for Bitcoin security

Randomness is an important component in the Bitcoin world, especially in the generation of seed phrases that secure access to Bitcoin. A random, securely generated seed phrase protects you from attacks and unwanted access. But how random and secure is the seed phrase actually? And which random generation methods are best suited to protect your coins?

In this article, we look at why randomness is so important, the risks associated with different seed phrase generation methods, and how you can best protect yourself.

The problem: What happens if random generation is insufficient?

A seed phrase consists of 12 to 24 words and is a representation of a very large random number. If this seed phrase isn't generated sufficiently randomly, there's a risk that it can be predicted or guessed. Attackers could conduct brute-force attacks to access your wallet or even exploit weaknesses in the random generation to steal access to your coins.

Without proper randomization, your wallet is vulnerable—and the risk increases the less control you have over the randomization process. So, what methods are available for seed phrase generation, and how secure are they really?

Different methods of seed phrase generation

Here, we'll go through the most commonly used seed phrase generation methods one by one and rate them in terms of security, starting with the riskiest methods and ending with the most secure.

1. Manually selecting seed phrase wordsn ⭐

Manually selecting seed phrase words is one of the most dangerous and unsafe methods available. Some users believe that by choosing "easy-to-remember" or "personally meaningful" words, they retain control over their seed phrase.

Random generation: Not really a coincidence

Risks: This method is extremely vulnerable to attacksSeed phrases, which consist of words manually selected by the user, can be guessed by programs checking for easy-to-remember seed phrases.

Security: Extremely low.
This method should not be used under any circumstances. Randomness is key to ensuring no one can predict your seed phrase.

2. Hot wallets (online wallets)⭐⭐

Online wallets (hot wallets) are widely available and often the first port of call for beginners. They offer a quick and easy way to store Bitcoin, but the seed phrase generation process is a significant risk.

• Random generation: With hot wallets, the seed phrase is often generated by software on the provider's server. You have to trust that the random generation is actually secure and not tampered with.
• RisksThe biggest disadvantage is the lack of control. You don't know whether the provider stores the seed phrase or might share it. A compromised server could allow attackers to access your seed phrase. Man-in-the-middle attacks are a risk when the seed phrase is transmitted over the Internet.

Security: Very Low.
Avoid generating seed phrases via hot wallets. If you do use them, generate your seed phrase offline and import it manually.

3. Mobile wallets (hot wallets)⭐⭐⭐

Similar to online wallets, mobile wallets on smartphones use algorithms to generate seed phrases. Since the device itself generates the seed, there is a certain improvement in security compared to a purely online solution.

• Random generation: Much depends on the smartphone's random number generation. Typically, a device-specific algorithmic random number generator (PRNG) is used. However, random number generation can be compromised by malware or security vulnerabilities in the device.
• Risks: Here, too, you have little control over the process. If your smartphone is compromised, the entropy can be manipulated, making the seed phrase predictable.

Security: Medium.
Use mobile wallets only for smaller amounts and not for long-term storage of larger sums.

4. Hardware wallets ⭐⭐⭐⭐

Hardware wallets (e.g. Specter DIY or BitBox) provide a much more secure environment for seed phrase generation because they operate in isolation from internet-enabled devices.

• Random generation: Manufacturers also differ here. The Specter DIY uses internal randomness combined with some previously unconscious inputs, such as the time and position when you touched the display, to generate a seed phrase. The Specter DIY even offers the option of true randomness through physical coin tosses into the process.
• RisksHardware wallets are considered one of the most secure methods because they work offline and the user has a high degree of control over the process. However, a certain residual risk remains if the hardware is compromised or does not come from a trusted source, or if the random algorithm is cracked in the future.

Security: High.

5. Physical methods: coin tossing, dice rolling and seed drawing⭐⭐????⭐⭐

For maximum security, you can use physical seed phrase generation methods that are completely independent of digital devices and algorithms.

a) Coin tosses for seed phrase creation

• method: Here, you flip a coin for each bit in the seed phrase in the Specter DIY. If it lands on heads, you change the bit (0 to 1, 1 to 0); if it lands on tails, it remains unchanged. This procedure can be used to control the digital generation or to create the entire seed phrase.
• Security: Extremely high, since random generation is physical and cannot be predicted, easily implemented with Specter DIY

b) Dice

• method: You roll the dice to determine the bits of the seed phrase. Each roll produces a number that is converted into binary values.
• Security: Extremely high. A completely transparent and secure process that requires no digital devices. However, it is somewhat more complex.

c) Physically pull seed phrase words

• method: You take all 2048 words from the BIP39 word list and randomly draw them from a bag or jar. This is how you determine the words of your seed phrase.
• Security: Extremely high, but the process is relatively complex.

Security of all physical methods: Extremely high.
These methods are ideal if you want absolute control over your seed phrase and do not want any digital component in the generation process.

Recommendations for secure seed phrase generation

• Avoid generating seed phrases with online walletsThey are too vulnerable to attacks and manipulation.
• Hardware wallets again Specter DIY offer a secure and transparent way to create seed phrases. The ability to add physical randomness through coin tosses makes them particularly secure.
• Physical methods Methods such as coin tosses, dice, or the physical drawing of seed phrase words offer maximum security. They are ideal for those who want full control over the process and value absolute security.

Conclusion: Security through true randomness

Generating your seed phrase should never be left to chance – unless it's genuine, verifiable randomness. By using secure hardware wallets or physical methods, you can ensure your seed phrase is unpredictable and completely secure.

If you are looking for maximum control and transparency, the Specter DIY, available in your online store, is an excellent choice because it not only uses reliable random algorithms but also allows you to introduce real physical randomness into the process.