Notes on using BIP141 mnemonics

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Notes on using BIP141 mnemonics

BIP141 (Bitcoin Improvement Proposal 141) is a standard proposed by the Bitcoin community to improve the efficiency and security of the Bitcoin network by introducing Segregated Witness (SegWit). Mnemonic phrases, as a convenient way to generate Bitcoin wallet private keys under the BIP39 standard, also play an important role in the BIP141 environment. Mnemonics consist of a series of easy-to-remember words that can restore the corresponding wallet address and private key, so their security is crucial. Here are seven things to note when using BIP141 mnemonics:

1. Avoid digital storage

Reason: Digital mnemonics are easily stolen by hackers through technical means (such as malware and phishing attacks).

Suggestion: Write the mnemonics by hand on paper or engrave them on physical media that are not easily damaged, and avoid using electronic devices for storage.

2. Physical media backup

Reason: A single storage point is at risk of loss or damage, affecting the security of funds.

Recommendation: Make multiple backup copies of the mnemonic phrase and store them in safe places, such as different rooms in your home, safes, or trusted relatives and friends.

3. Verify that the mnemonic phrase is accurate

Reason: Entering the wrong mnemonic phrase may result in the inability to recover funds.
Recommendation: After the first recording, immediately use the wallet software to verify whether the mnemonic phrase can correctly generate the expected wallet address. Some wallet applications provide this verification function to ensure that it is correct before proceeding.

4. Keep the mnemonic phrase properly

Reason: Once the mnemonic phrase is leaked, it is equivalent to exposing the wallet private key, and the funds are at risk of being stolen.
Recommendation: Treat the mnemonic phrase as highly confidential information and avoid disclosing it to anyone, including so-called "customer service" or "technical support".

5. Use secure hardware

Reason: Hardware wallets can provide higher security than software wallets and effectively prevent cyber attacks.
Recommendation: Consider using hardware wallets that support the BIP141 standard to manage Bitcoin. These devices are usually designed with physical security mechanisms, such as PIN codes, biometrics, etc., to further protect mnemonics and private keys.

6. Beware of network risks

Reason: Phishing, malware, public Wi-Fi, etc. may all be ways for attackers to steal mnemonics.
Recommendation: Do not access your wallet or enter mnemonics in an unsafe network environment, regularly update your operating system and antivirus software, and avoid clicking on unknown links or downloading attachments from unknown sources.

7. Protect personal privacy

Reason: Mnemonics are associated with wallets, indirectly reflecting the user's financial status and may become the target of criminals.
Recommendation: Keep a low profile in daily life and avoid discussing your cryptocurrency holdings on public platforms such as social media to reduce the risk of targeted attacks.

In short, as a core element of Bitcoin wallet security, the management and protection of BIP141 mnemonics must strictly follow the above precautions. By taking these precautions, the risk of financial loss due to mnemonic leakage can be greatly reduced, ensuring the safety of your digital assets.