This article is an exploration of the security surrounding seed phrases, commonly used in the crypto community. Its primary aim is educational, shedding light on the strengths and potential vulnerabilities of seed phrases.
While we delve into the creation of a script that generates and tests these phrases using web3.js, I emphasize the moral and legal importance of not exploiting these findings maliciously.
This is not a guidebook for exploitation.
Let’s dive in.
1. What is a Seed Phrase? A Deep Dive
A seed phrase, sometimes known as a mnemonic phrase, stands as a cornerstone of cryptographic security within the blockchain domain.
But what is it really, and how does it work?
1.1 The Makeup of a Seed Phrase
At its core, a seed phrase consists of 12 distinct words.
These aren’t just any words picked from a dictionary; they are chosen from a predetermined list specially curated for this purpose.
This list (bip-0039) is composed of 2048 individual words, each chosen for its distinctiveness to prevent potential confusion.
1.2 The Mathematics of Security
The sheer math behind the seed phrase’s security is staggering.
If one were to blindly guess a single word from the list of 2048, the odds stand at a mere 1 in 2048.
Now, if you amplify that probability by attempting to guess all 12 words in order, the numbers become astronomical.
Let’s break this down a bit. For the first word, you have a 1 in 2048 chance of guessing correctly. For the second word, you have another 1 in 2048 chance, and so on for all 12 words.
If you multiply these probabilities together, the odds of getting all 12 words correct is a mind-boggling 1 in 2048 to the power of 12.
But that’s not the end of it. Even if someone were miraculously to guess the 12 words, they would also need to arrange them in the correct sequence.
Given that there are 12! (12 factorial) ways to arrange 12 words, this adds yet another layer of complexity and security.
1.3 Why It’s Deemed Secure
Given the probabilities discussed above, it’s evident why the crypto community holds the seed phrase in high regard.
It’s not just about the words themselves but the combination and order that make them so resilient against brute-force attacks. It’s like having a combination lock where the numbers range in the thousands and the sequence spans a dozen places.
The mechanism appears foolproof, with its security rooted deeply in mathematical principles.
2. Unraveling the Limitations of Seed Phrases
While seed phrases have long been celebrated for their robust security mechanisms, they are not without vulnerabilities.
As with most technological advancements, new challenges and threats emerge over time.
In the realm of seed phrases, several factors play into these vulnerabilities.
2.1 The Explosion of the Crypto User Base
The crypto landscape has witnessed an explosive growth in users over the years.
As more people are drawn to the allure of decentralized finance and the myriad opportunities blockchain offers, the number of active accounts in the crypto world multiplies.
Each of these users, more often than not, operates multiple accounts. Whether it’s for diversifying assets, ensuring anonymity, or simply organizing their investments, the result is an increase in the number of seed phrases generated and in active use.
In mathematical terms, while the odds of guessing a specific seed phrase remain astronomically low, the sheer volume of existing phrases makes the possibility of randomly hitting a valid one slightly higher.
2.2 The Evolution of Technology: A Double-Edged Sword
With every passing year, we witness leaps in technological advancements.
Computers today are magnitudes more powerful than their predecessors a decade ago. This escalating computational power, while propelling numerous industries forward, also amplifies the potential threats in the crypto space.
Brute force attacks, which involve systematically checking all possible combinations until the correct one is found, have historically been deemed infeasible given the vastness of possibilities in seed phrases.
However, with today’s high-performance computers and parallel processing capabilities, these attacks can be executed at an unprecedented speed.
2.3 Balancing Security with Practicality
The security mechanisms behind seed phrases are rooted in balancing user convenience and protection.
Too complex, and users might struggle with usability or even risk forgetting their phrases.
Too simple, and the system becomes more susceptible to breaches.
While seed phrases strike a commendable balance, the burgeoning crypto user base combined with fast-paced technological advancements necessitate a continuous evaluation of their long-term viability.
3. The Proof of Concept (POC): Putting Theory into Practice
Given the aforementioned challenges and the exponential growth of the crypto community, I was curious: how plausible is it really to stumble upon an active seed phrase?
To answer this, I embarked on a hands-on experiment, bridging advanced technology with the fundamental principles of seed phrases.
Recognizing the near-impossibility of randomly generating a valid seed phrase using a simple JavaScript script, I turned to a more unconventional approach: harnessing the power of OpenAI.
3.1 The Setup: Leveraging OpenAI’s Extensive Reach
Given OpenAI’s advanced capabilities in scraping and processing vast amounts of online information, I was intrigued to explore a hypothesis:
Could OpenAI, in its extensive data trawling, have potentially come across seed phrases that might have been accidentally leaked online?
A cron job was established to facilitate this exploration.
This automated task was designed to prompt OpenAI to sift through its expansive dataset and generate potential seed phrases, extracted from the standard crypto list (BIP-0039), at regular intervals.
3.2 The Testing Phase: Scrutinizing for Validity
With a set of phrases generated by OpenAI, the next phase focused on testing these phrases for any valid matches.
Employing web3.js for Verification
For the verification process, web3.js was utilized.
This suite of libraries, essential for interacting with Ethereum nodes, was instrumental in checking whether any of the generated seed phrases corresponded to active Ethereum accounts.
Observing Account Balances
In instances where a match was found, the focus was to discreetly verify the account balance.
The intent here was purely investigative — to ascertain if these phrases, possibly retrieved from online leaks, were linked to active accounts.
Setting Up Automated Notifications
An automated notification system was integral to the experiment.
It was configured to alert me via email whenever a matching account with a balance was identified. This system enabled continuous monitoring without the need for manual intervention.
3.3 Continual Execution and Ethical Considerations
The process, from generating potential seed phrases to verifying account matches, was automated to occur at ten-minute intervals.
This relentless cycle was key to probing the extensive data resources of OpenAI and testing the hypothesis at hand.
It’s crucial to emphasize that this experiment was conducted with the utmost respect for ethical standards. The objective was not to exploit or access any funds but to evaluate the security implications in a controlled, ethical manner.
This exploration into the intersection of AI and crypto security serves as a reminder of the intricate challenges and responsibilities in safeguarding digital assets.
⚠️ This POC was not aimed at breaching security or capitalizing on vulnerabilities. It was an academic exercise, a deep dive into the probabilities and potential risks that loom in the ever-expanding realm of crypto. I want to emphasize that, at no point did I access or exploit any account found during the research. My intentions remained purely investigative and educational.
4. The Findings: Surprising Results in a Short Time
Upon launching the experiment, the results came in faster than anticipated.
Here’s a deep dive into the discoveries made during the brief span of the experiment and the implications they hold.
4.1 Immediate Results
The automated system was designed to churn out and test a vast array of seed phrases continuously.
Within the first 24 hours, to my astonishment, the cron job had successfully matched two distinct seed phrases to active Ethereum accounts.
What was particularly intriguing about these accounts was that they held a small amount of Ether — mere cents, suggesting that these accounts, while active, were not in regular use or had been previously compromised.
This led me to a compelling hypothesis: the seed phrases for these two accounts had likely been leaked online at some point.
It’s plausible that opportunistic individuals had already capitalized on these leaks, withdrawing the substantial funds and leaving behind only traces of Ether.
What makes this scenario particularly interesting is the role of OpenAI’s training mechanisms. As OpenAI’s models continuously learn and adapt from a vast range of internet data, they could have incidentally picked up on these leaked seed phrases.
These phrases, having been made public through their leakage, became part of the data pool that OpenAI uses for its learning processes.
This occurrence, while fascinating, also underscores a significant concern in the realm of digital security. It demonstrates how public data leaks can have lingering effects, especially when advanced AI tools like OpenAI are involved, capable of unearthing and repurposing such data.
4.2 Ethical Standpoint
It’s imperative at this juncture to underline my stance on the findings. At no point did I access these accounts beyond verifying the presence of Ether.
The funds within remain untouched, and there was never an intent to utilize them.
The experiment was steered by curiosity and a genuine interest in probing the depths of seed phrase security, not by any motive of personal enrichment.
The results, while intriguing, come with a heavy word of caution. Replicating this experiment, especially with motives of personal gain, is not a path I endorse.
Beyond the boundaries of legality — such actions, if pursued with ill intentions, are undeniably illegal — there’s a moral compass to consider.
Treading on someone else’s digital territory with the intention of profiteering is as immoral as any form of theft in the physical world. It’s a breach of trust, privacy, and the unwritten codes of the digital realm.
4.3 The Larger Implication
While the experiment unearthed only a couple of accounts with minuscule amounts, it’s worth pondering the bigger picture.
In a vast sea of crypto users, where seed phrases are generated by the millions, even the tiniest probability of matching a phrase can lead to significant consequences.
It underscores the need for continuous evolution in security practices, ensuring users are always a step ahead of potential vulnerabilities.
In sharing these findings, my hope is to foster awareness and stimulate conversations around bolstering the safety mechanisms in the world of crypto. Knowledge is power, and being forewarned is being forearmed.
Conclusion: A Measured Perspective on Seed Phrase Security
The digital frontier, particularly the cryptosphere, has brought forth both unparalleled opportunities and novel vulnerabilities.
The research embarked upon was an exploration of one such vulnerability, albeit a seemingly minor one.
Let’s reflect on the implications and the broader lessons to be drawn from this endeavor.
5.1 Evaluating the Risks
The odds of a random guesswork leading to a successful match of your seed phrase are indeed low.
However, the word ‘low’ shouldn’t be mistaken for ‘impossible’.
The experiment demonstrated that while the odds are slim, they aren’t zero.
In a conventional sense, you might feel more threatened by tangible risks, like a home burglary, which, statistically, might be more likely.
5.2 The Prudent Approach to Crypto
Given the nascent stage of the cryptocurrency world and the rapid technological advancements, vigilance is key.
The findings advocate for a diversified approach.
Just as one wouldn’t store all their life savings in a single place in the physical world, the same prudence should extend to the digital domain.
Spreading your crypto assets across multiple wallets can act as a safety net. Should one wall be breached, it doesn’t lead to a total wipeout.
5.3 A Final Word of Caution
Reflecting on the essence of this research, the primary motive was always educational.
It was an exercise in understanding potential vulnerabilities, not a guidebook for exploitation.
Anyone considering the use of such knowledge for ill intentions is urged to rethink. The ethical and legal ramifications aside, the essence of the crypto community lies in its shared ethos of trust and collective growth.
5.4 Safekeeping Your Digital Treasure
In the rapidly evolving world of blockchain and crypto, vigilance, knowledge, and continuous learning are your best allies. Adopt best practices, stay updated, diversify your holdings, and approach every transaction or decision with a measure of caution.
Remember, in the digital world, as in the physical one, safety first is always a good motto.
I welcome your feedback on this piece. The decision to publish was one I grappled with, concerned it might inadvertently guide those with malicious intentions. Whether it stays online is still under consideration.
Always prioritize safety, and remember the wisdom of diversifying — never keep all your assets in a single place.
If you have questions or feedback, don’t hesitate to reach out at caleb.pro@pm.me or in the comments section.
[Disclosure: Every article I pen is a fusion of my ideas and the supportive capabilities of artificial intelligence. While AI assists in refining and elaborating, the core thoughts and concepts stem from my perspective and knowledge. To know more about my creative process, read this article.]
