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 32  From: Thomas Voegtlin <thomasv@electrum.org>
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 47  Subject: Re: [Bitcoin-development] Electrum 2.0 has been tagged
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 60  
 61  Thanks Mike, and sorry to answer a bit late; it has been a busy couple
 62  of weeks.
 63  
 64  You are correct, a BIP39 seed phrase will not work in Electrum, and vice
 65  versa. It is indeed unfortunate. However, I believe BIP39 should not be
 66  followed, because it reproduces two mistakes I did when I designed the
 67  older Electrum seed system. Let me explain.
 68  
 69  The first problem I have with BIP39 is that the seed phrase does not
 70  include a version number.
 71  
 72  Wallet development is still in an exploratory phase, and we should
 73  expect even more innovation in this domain. In this context, it is
 74  unwise to make decisions that prevent future innovation.
 75  
 76  However, when we give a seed phrase to users, we have a moral obligation
 77  to keep supporting this seed phrase in future versions. We cannot simply
 78  announce to Electrum users that their old seed phrase is not supported
 79  anymore, because we created a new version of the software that uses a
 80  different derivation. This could lead to financial losses for users who
 81  are unaware of these technicalities. Well, at least, that is how I feel
 82  about it.
 83  
 84  BIP39 and Electrum v2 have a very different ways of handling future
 85  innovation. Electrum v2 seed phrases include an explicit version number,
 86  that indicates how the wallet addresses should be derived. In contrast,
 87  BIP39 seed phrases do not include a version number at all. BIP39 is
 88  meant to be combined with BIP43, which stipulates that the wallet
 89  structure should depend on the BIP32 derivation path used for the wallet
 90  (although BIP43 is not followed by all BIP39 compatible wallets). Thus,
 91  innovation in BIP43 is allowed only within the framework of BIP32. In
 92  addition, having to explore the branches of the BIP32 tree in order to
 93  determine the type of wallet attached to a seed might be somewhat
 94  inefficient.
 95  
 96  The second problem I see with BIP39 is that it requires a fixed
 97  wordlist. Of course, this forbids innovation in the wordlist itself, but
 98  that's not the main problem. When you write a new standard, it is
 99  important to keep this standard minimal, given the goal you want to
100  achieve. I believe BIP39 could (and should) have been written without
101  including the wordlist in the standard.
102  
103  There are two ways to derive a master key from a mnemonic phrase:
104   1. A bidirectional mapping between words and numbers, as in old
105  Electrum versions. Pros: bidirectional means that you can do Shamir
106  secret sharing of your seed. Cons: It requires a fixed wordlist.
107   2. Use a hash of the seed phrase (pbkdf). Pros: a fixed wordlist is not
108  required. Cons: the mapping isn't bidirectional.
109  
110  Electrum v1 uses (1). Electrum v2 uses (2).
111  
112  Early versions of BIP39 used (1), and later they switched to (2).
113  However, BIP39 uses (2) only in order to derive the wallet keys, not for
114  its checksum. The BIP39 checksum uses (1), and it does requires a fixed
115  wordlist. This is just plainly inconsistent. As a result, you have
116  neither wordlist flexibility, nor Shamir secret sharing.
117  
118  Having a fixed wordlist is very unfortunate. First, it means that BIP39
119  will probably never leave the 'draft' stage, until all languages of the
120  world have been added. Second, once you add a wordlist for a new
121  language, you cannot change it anymore, because it will break existing
122  seed phrases; therefore you have to be extremely careful in the way you
123  design these wordlists. Third, languages often have words in common.
124  When you add a new language to the list, you should not use words
125  already used by existing wordlists, in order to ensure that the language
126  can be detected. It leads to a first come first served situation, that
127  might not be sustainable in the future.
128  
129  In order to support the old Electrum v1 seeds, all future versions of
130  Electrum will have to include the old wordlist. In addition, when
131  generating new seed phrases, Electrum now has to avoid collisions with
132  old seed phrases, because the old ones did not have a version number.
133  This is painful enough, I will not repeat the same errors twice.
134  
135  Electrum v2 derives both its private keys and its checksum/version
136  number using a hash of the seed phrase. This means that wordlists can be
137  added and modified in the future, without breaking existing seed
138  phrases. It also means that it will be very easy for other wallets to
139  support Electrum seedphrases: it requires about 20 lines of code, and no
140  wordlist is required.
141  
142  
143  Thomas
144  
145  
146  Le 02/03/2015 16:37, Mike Hearn a =C3=A9crit :
147  > Congrats Thomas! Glad to see Electrum 2 finally launch.
148  >=20
149  >=20
150  >> * New seed derivation method (not compatible with BIP39).
151  >=20
152  >=20
153  > Does this mean a "12 words" wallet created by Electrum won't work if
154  > imported into some other wallet that supports BIP39? Vice versa? This s=
155  eems
156  > unfortunate. I guess if seeds are being represented with 12 words
157  > consistently, people will expect them to work everywhere.
158  >=20
159  
160