How does it work under the hood: Hardware wallet recovery?


#1

How is it possible that a bunch of words recover a whole hardware wallet information.
I mean it´s just 24 Words. Do they contain all privet keys and all public addresses ??? I doubt that.
Are those Information saved online somewhere and one get access to them using 24 Words ? It would be strongly insecure i guess.

Does someone know the answer ??


#2

The Trezor wallet is a Hierarchical Deterministic wallet. This means that the entire wallet is derived from the seed. The seed is encoded as the 24 word mnemonic which is what you have to backup. To restore the wallet, you enter the mnemonic which is converted to the seed. The private keys are then derived from the seed, and since it is the same seed and algorithm, you will get the same private keys when you restore.

The Trezor (or any other hardware wallet) will not send any data back to the manufacturers. If they did, they would lose all of their reputation and the devices would not be safe nor recommended.

Quoted from this: https://bitcoin.stackexchange.com/questions/54610/how-does-trezors-wallet-recovery-work-if-the-private-key-never-leaves-the-devic