The mnemonic

gravity often ridge visit alarm audit bag spider recycle expose announce hover rug wrong proud

The mnemonic

Defined in Bip39

It is a list of words from a dictionary:

• 12 words
• 15 words
• 18 words
• 21 words
• 24 words

Why do we need it?

• Multiple key pairs are required for different purposes withing the same wallet
• The seed is a source of randomness to deterministically derive keys from
• Every seed is completely random
• From every seed the exact same keys are derived (pure function)

What can we derive from the mnemonic?

• "Regular" Bitcoin addresses (Layer 1)
• Scripts need to be remembered somewhere else!
• The Lightning key pair
• • Public key = node id
  • Stays always the same

Other essential data than cannot be retrieved from the seed

Crucial for accessing funds

• Channel states
• Revocation keys

Some non-sensitive data:

• Exchange rates
• Invoices
• ...

Importing lipa wallet to a new lipa app

Some things are restored from the seed

• Key pairs (Layer 1 funds)
• Node identity
• Keys for data encryption (Lipa Backend)

Importing lipa wallet to a new lipa app

The rest is restored from Lipa backend:

• Channel states (-> Lightning Wallet balance)
• Transaction history
• ...

Old app cannot be used anymore!

Importing lipa mnemonic to another on-chain wallet

Lightning wallet

• Non-Lipa wallet cannot access it
• Likely harmless

Importing lipa mnemonic to another on-chain wallet

Lightning wallet

• Non-Lipa wallet cannot access it
• Likely harmless

Importing lipa mnemonic to another Lightning wallet

• Will not work properly because information is missing
• Cannot be used to recover funds / working wallet
• Potentially dangerous because it might interfere with Lipa wallet (if it's still being used)