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Brainwallets: are they really the best place for Bitcoin?

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What is a Brainwallet?

A brainwallet is a private code that one stores in their brain to finance and protect their cryptocurrencies. It has no physical backups. With attackers identifying secret codes and the need to formulate complex keys, the question arises whether brainwallets are the best option.

A weak password could result in a loss of Bitcoin funds. Front-running bots can copy any transaction waiting to be submitted. Bots can determine whether a transaction that has entered the mempool can be duplicated, and they will instantly produce their own copy with a high gas fee, which guarantees that they will be the first to claim it.

This usually occurs in Ethereum, particularly with public smart contracts that control funds. Bitcoin does not have smart contracts to front-run, but a similar incident occurs when one uses brainwallets.

Protecting your brainwallet

To avoid forgetting the code, one must create a wallet from a memorable phrase. Nonetheless, in some situations, the BTC in these wallets were taken before the transaction to finance them was verified. This has been the case even for long and elaborated phrases, which have been solved within a day.

As mentioned earlier in Cointelegraph, blockchain makes it a challenge to protect funds with a password. Long-established platforms safeguard passwords by storing them in an undisclosed database. Attackers are normally allowed several guesses before the server ends their attempts.

Blockchain secret keys, however, can be produced from large dictionary databases, which serves to the attacker’s advantage. To thwart attackers’ attempts, random pieces of data can be added. On the other hand, any address that surpasses an attacker’s predictions will likely be hard to recall.

Several people have lost their BTC due to forgetting a secret code they held in their brain. Ethereum is also likely to be lost as millions of dollars in Ether (ETH) have been previously stolen.

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Martha Gardiner

Martha is a freelance writer who has experience writing about financial topics, health, lifestyle, fashion and beauty. She also has experience in course writing and CV writing. Martha loves to read and is very fond of animals.

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