What is Mnemonic Phrase?
Let's find out Mnemonic Phrase meaning, definition in crypto, what is Mnemonic Phrase, and all other detailed facts.
A Mnemonic Phrase is a set of completely random 12 or 24 words presented in a specific order. It is a sort of memory aid that helps people recover vital information.
For example, primary schools use mnemonic practices to teach the order of the planets closest to the sun - MVEMJSUN. In this case, each letter represents a planet starting with Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, and Neptune. This set of letters can be used to create a phrase that’s easy to remember. A common example of this phrase is “My Very Excellent Mother Just Served Us Noodles”.
In the world of cryptocurrencies, a mnemonic phrase is defined as a set of random words used in a specific sequence that grants access to the holder's owned cryptocurrency assets.
Let’s have a look at how a mnemonic phrase could look like: car school horse potato notebook bottle stairs pink litter building loser tank.
It’s a set of 12 completely random words that have no correlation. In order to gain access to a system, the user will have to say or type these words in the exact same sequence that they’re presented here.
When you open an account with a crypto wallet provider, you’re usually provided with a mnemonic phrase. Companies highly encourage their users to write down this phrase anywhere else that’s not in the virtual space such as on a piece of paper.
It’s vital to keep the mnemonic phrase safe in case of loss, theft, or damage. Their purpose is to give you another chance to retrieve your digital assets before they’re lost forever.
Any coins that have been put forward as a stake are not spendable<\/strong>. If a stakeholder breaks the rules of the blockchain or deliberately records inaccurate transaction data to receive rewards, they may lose their wager. Stakeholders follow a high-risk-high-reward strategy by staking large amounts of coins to increase their odds of making a profit.<\/p>\n<p>Although minting can refer to different processes of creating coins or tokens, it is most commonly used to refer to new cryptocurrency created via the Proof-of-Stake mechanism.<\/p>\n<h2>Non-Fungible Tokens<\/h2>\n<p>Non-fungible tokens are <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-erc-721/">ERC-721 standard tokens<\/strong><\/a> built on the <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum blockchain<\/strong><\/a>. The process of minting an NFT differs from minting cryptocurrency. All new NFTs are added to the Ethereum blockchain and often contain visual files, such as photos or videos, attached to them.<\/p>\n<p>Users who want to mint NFTs must have a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">cryptocurrency wallet<\/strong><\/a> with Ethereum (ETH). They can then register their wallet on an NFT marketplace like <strong>OpenSea<\/strong> <strong>or<\/strong> <strong>Rarible<\/strong>. To create the NFT, they can upload the file they want to be attached to the token and pay for the creation using ETH. The NFT is minted when the transaction data is verified.<\/p>\n<p> <\/p>","definition":"the process of creating new cryptocurrency coins via the Proof-of-Stake (PoS) consensus algorithm.","status":"published","meta_title":"What is Minting? Definition & Meaning | Crypto Wiki","meta_description":"Minting meaning: Minting - the process of creating new cryptocurrency coins via the Proof-of-Stake (PoS) consensus algorithm.","meta_keywords":null}" :model="{"id":548,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Mnemonic","level":"easy","author_id":1,"created_at":"2023-06-19T06:59:00.000000Z","updated_at":"2023-10-04T13:11:02.000000Z","slug":"what-is-mnemonic-phrase","title":"What is Mnemonic Phrase?","section":"M","keyword":"Mnemonic Phrase","content":"<p><strong>A Mnemonic Phrase is a set of completely random 12 or 24 words presented in a specific order<\/strong>. It is a sort of memory aid that helps people recover vital information.<\/p>\n<p>For example, primary schools use mnemonic practices to teach the order of the planets closest to the sun - MVEMJSUN. In this case, each letter represents a planet starting with Mercury, Venus, Earth, Mars, Jupiter, Saturn, Uranus, and Neptune. This set of letters can be used to create a phrase that’s easy to remember. A common example of this phrase is <em>“My Very Excellent Mother Just Served Us Noodles”<\/em>.<\/p>\n<p><strong>In the world of cryptocurrencies<\/strong>, <strong>a mnemonic phrase<\/strong> is defined as <strong>a set of random words used in a specific sequence that grants access to the holder's owned <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cryptocurrency/">cryptocurrency assets<\/strong>.<\/p>\n<p>Let’s have a look at how a mnemonic phrase could look like: <strong>car school horse potato notebook bottle stairs pink litter building loser tank<\/strong>.<\/p>\n<p>It’s a set of 12 completely random words that have no correlation. In order to gain access to a system, the user will have to say or type these words in the exact same sequence that they’re presented here. <\/p>\n<p>When you open an account with a crypto <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-wallet/">wallet provider, you’re usually provided with a mnemonic phrase. Companies highly encourage their users to write down this phrase anywhere else that’s not in the virtual space such as on a piece of paper.<\/p>\n<p>It’s vital to keep the mnemonic phrase safe in case of loss, theft, or damage. Their purpose is to give you another chance to retrieve your digital assets before they’re lost forever.<\/p>","definition":"A Mnemonic Phrase, or Seed Phrase, is a set of words presented in a specific order which grants access to owned cryptocurrency assets.","status":"published","meta_title":"What is Mnemonic Phrase? Definition & Meaning | Crypto Wiki","meta_description":"Mnemonic Phrase meaning: Mnemonic Phrase - A Mnemonic Phrase, or Seed Phrase, is a set of words presented in a specific order which grants access to owned cryptocurrency assets.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}" :chapter-list="[{"id":1,"title":"Blockchain","slug":"blockchain","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-blockchain.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/blockchain-101.jpg","rating":100,"sections":[{"chapter_id":1,"order":1,"slug":"what-is-blockchain","title":"What is the Blockchain?","status":"published","modified_content":null},{"chapter_id":1,"order":2,"slug":"decentralized-blockchain","title":"Anonymous & Decentralized Blockchains: The Cornerstone of Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":3,"slug":"blockchain-transaction","title":"What is a Blockchain Transaction in Crypto?","status":"published","modified_content":null},{"chapter_id":1,"order":4,"slug":"crypto-fees","title":"The Different Types of Crypto Fees Explained","status":"published","modified_content":null},{"chapter_id":1,"order":5,"slug":"what-is-bridging-in-crypto","title":"The Key Notion Behind the Concept of Bridging in Crypto","status":"published","modified_content":null},{"chapter_id":1,"order":6,"slug":"types-of-blockchains","title":"Different Types of Blockchains: What to Look Out For?","status":"published","modified_content":null}]},{"id":2,"title":"Cryptocurrencies","slug":"cryptocurrencies","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-cryptocurrencies.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/cryptocurrencies-101.jpg","rating":100,"sections":[{"chapter_id":2,"order":1,"slug":"what-is-a-cryptocurrency","title":"What is a Cryptocurrency?","status":"published","modified_content":null},{"chapter_id":2,"order":2,"slug":"how-does-cryptocurrency-work","title":"How Does Cryptocurrency Work?","status":"published","modified_content":null},{"chapter_id":2,"order":3,"slug":"is-cryptocurrency-a-good-investment","title":"Is Cryptocurrency a Good Investment? 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