Part 2/10:
When setting up a hardware wallet like Trezor, you're presented with a list of 12, 20, or 24 words. This list, termed your wallet backup or recovery seed, is essentially a human-readable representation of your private key. Unlike traditional passwords, this seed grants full access to your cryptocurrency holdings stored on the blockchain.
Fun Fact: Your seed initially is a random string of characters that’s transformed into a sequence of words—making it easier to write down, store, and remember. Before this industry-standard method, users had to memorize or safely store cumbersome private key strings, which was far less user-friendly.