Brain Wallet
Also known as: Mnemonic Wallet, Passphrase Wallet, Memory-Based Wallet
A cryptocurrency wallet generated from a passphrase that is memorized by the user instead of being stored.
A brain wallet is a type of cryptocurrency wallet where the private key is derived from a memorized passphrase, typically using a hash function. This method removes the need for physical or digital storage of private keys, relying solely on the user's memory. While it offers convenience and portability, brain wallets are considered insecure due to weak passphrases and susceptibility to brute-force attacks. Historical incidents have shown that poorly chosen phrases lead to wallet theft. They are now largely deprecated in favor of hardware wallets and more secure mnemonic-based systems (BIP-39).