# Security

## Mnemonic phrase

Upon registration, our system first generates a **mnemonic phrase** for you. This phrase is a sequence of words generated in a deterministic fashion, making it easy to remember yet crucial for cryptographic processes. The mnemonic phrase serves as the source from which your private key is derived.

<figure><img src="/files/ceU2PrTeiKkw4vYP2b99" alt="" width="375"><figcaption><p>AI-generated image</p></figcaption></figure>

Following the derivation of the private key, we use this key to generate a master key. This master key is central to your cryptographic activities and must be securely protected. To ensure its security, we encrypt the master key using Advanced Encryption Standard (AES) technology. Here, your master key is encrypted directly using your password as a seed, providing robust protection against unauthorized access.

### Master key

After securing the master key through AES encryption, we then use it as a foundation for further cryptographic operations. Utilizing the Ed25519 algorithm, known for its strong security and efficiency in generating digital signatures, we derive subsequent keys from the master key. Ed25519 employs elliptic curve cryptography, optimizing the process of generating secure and fast signatures for your transactions.

These derived keys are what you will use to create and manage your wallets. It is important to note that every step in this process, from the generation of the mnemonic to the derivation of keys, occurs client-side. This method ensures that no sensitive data, such as your mnemonic, private key, or master key, is ever transmitted or stored externally. All cryptographic operations are performed locally on your device, ensuring maximum security and privacy of your digital assets.

<figure><img src="/files/Uue1mPOalP8puj8lebi8" alt=""><figcaption></figcaption></figure>


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