Bitcoin and encrypted digital currencies are stored through a private key that is kept by the owner of these currencies only, and in the event of losing this private key or because of difficulty in memorizing it, the recovery phrase can be used, which consists of 12 to 24 words that can be saved or written on an external paper, and can be used And return to it in the event of a desire to move these currencies.

But what about the possibility of guessing this phrase is it possible? Does this mean that our digital currencies that we keep are at risk?

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Answer:

did Alistair Milne, CIO of Altana Digital Currency Fund, tweeted that someone had managed to spot the redemption phrase and move the bitcoin he had deliberately put in front of anyone who could speculate on the payback phrase.

I woke up to some “bad” news this morning. 1BTC wallet has been forcibly enforced, which is impressive. They must have rented several GPUs to do this quickly!

I knew I was against the clock but most people thought it would take a few weeks to force 4 first words pic.twitter.com/uAoLyQkhRJ

– Alistair Milne June 17, 2020

Milne has published a contest that includes a 1 Bitcoin reward which at the time of writing this article is valued at $9,434 for anyone who can decipher and guess the redemption phrase.

Milne published the contest and challenge at the end of May, provided that he would issue a hint about the 12-word redemption phrase periodically, and he would reveal the last 3 or 4 words at once when the contest ended.

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But it didn’t actually reach that stage, as a member of the crypto community was able to forcibly move the wallet seed after spreading the eighth word.

It took the striker and award winner 44 hours to find the complete seed phrase.

Milne stated on Twitter that he hoped to make the giveaway more comprehensive and attract different groups without the technical skilled, as the challenge was more than just a smart giveaway, as Milen worked on making it a technical experiment that shows how quickly an attacker can During which he gets the 12-word recovery phrase if he has more than half of the words.

For information, the initial phrase for a cryptocurrency wallet is 12 or 24 words that are used as a second option after the initial key to access digital currencies.

The reserve term for a bitcoin wallet or other digital currency is difficult to predict as it takes billions of years to crack and speculate.

And what happened with “Milan” is that he revealed more than half of the words of the phrase (revealing 8 words) to remain 4 words, and thus the process of guessing it by means of computer programs became possible, which is what the winner of the “Milan” prize did, as it took him 44 hours to withdraw 1 Bitcoin .

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Milne told the attacker that the attacker quickly transferred the bitcoin for the transaction with a large fee of 0.01 bitcoin (approximately $100) due to his sense of pressure and the necessity of speed in moving the currency before another attacker did so.

In conclusion, and through this experience, it becomes clear to us that the phrase “recovery” is fortified, except in the event that some of its words are leaked, then it becomes dangerous, so it is better not to fear its prediction, but rather how to save it away from intruders.

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