BIP39 Extension for Manual Seed Phrase Creation

The discussion revolves around the critique and potential improvement of the BIP39 checksum mechanism, particularly in relation to manually generated entropy. The original proposal suggests an alternative approach for importing a 16-word seed phrase that could sidestep the controversies surrounding the current formats (12/15/18/21/24 words) designed for transcribing computer-generated entropy. This is rooted in the belief that while the checksum proves beneficial in ensuring accuracy when transferring seed phrases between computing devices, it becomes less useful—or even problematic—when dealing with manually generated entropy.

A key aspect of the proposal includes methods for users to transcribe their 16-word phrase without relying on a checksum. These methods involve choosing words from the full 2048 word list provided by BIP39, selecting from a subset of 256 words twice, or verifying the xpub derived from their seed phrase. The emphasis on initial xpub confirmation aims to protect against compromised devices misleading users into sending funds to unauthorized addresses.

The conversation extends into practical implications and adoption barriers. For instance, the complexity of creating a seed phrase poses challenges in introducing new users (no-coiners) to cryptocurrency, where any friction can significantly decrease conversion rates. The proposed solution emphasizes the need for simplicity and accessibility in onboarding processes. It suggests that understanding randomness—as experienced in games like poker—and the importance of secrecy are more intuitive to newcomers than technical concepts like hashes.

To facilitate this, the proposition outlines a novel method involving a printout of the BIP39 wordlist and paper masks for binary selection based on dice rolls, eliminating the need for users to grapple with complex numerical or cryptographic concepts. This approach not only simplifies the process of generating a seed phrase but also aligns with the broader goal of making cryptography accessible to a wider audience. Furthermore, it mentions the potential for such a system to be packaged with durable materials like steel plates for the secure recording and storage of the generated phrases.

This dialogue underscores a shift towards user-centric design in cryptographic tools, reflecting a broader trend in technology development that prioritizes usability and accessibility. The links provided (Reddit Trezor thread, Reddit Bitcoin thread, Bitcoin StackExchange question, and another Reddit Bitcoin thread) serve as references for further exploration on the topic, showcasing various community perspectives on the matter.