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SCypher: Deterministic Encrypted BIP39 Derivation

Enterprise-grade seed phrase management for the blockchain era

What is SCypher?

  • SCypher is a tool that enables deterministic encryption of BIP39 seed phrases.
  • From one master seed and a password, SCypher generates a new, valid BIP39 phrase.
  • The resulting phrase is reversible only with the correct password.

The Core Innovation

  • All output phrases are valid BIP39 mnemonics.
  • Symmetric and deterministic encryption: Reversible if and only if password is known.
  • Enables use of derived wallets without ever exposing or using the master seed directly.

Enterprise-Grade Potential

  • One master seed → thousands of operational wallets.
  • No need to store derived phrases: regenerate them at any time using password.
  • Perfect for:
    • Access compartmentalization.
    • Automated key generation for smart contracts.
    • Delegation of funds to departments or users.

Operational Delegation

  • SCypher enables secure delegation of derived seed phrases to trusted personnel.
  • Each derived seed is valid and usable on its own.
  • Perfect for giving strategic employees the ability to sign transactions — without ever exposing the master seed.
  • Each employee can be assigned a unique derived phrase using a password only known to the administrator.
  • If needed, access can be revoked or rotated by generating a new derived phrase.

Security by Design

  • Derived phrases do not reveal the master seed.
  • Even if the password is guessed and the master is reached, it's indistinguishable from any other derived seed.
  • Argon2id integration adds powerful brute-force resistance.
  • When passwords are strong and diverse, reverse-engineering the system becomes computationally unfeasible.

Attack Scenarios and Real-World Protection

  • If the master seed is never used directly, there is no external reference to identify it.
  • Attacker who compromises one or more derived seeds:
    • Cannot confirm their relation.
    • Cannot verify a correct password guess.
    • Cannot recognize the master seed if reached.
  • Strong KDF (Argon2id) makes brute force attempts extremely slow.
  • Clear advantage for real-world systems needing hierarchical, segmented access.

Technical Foundations

  • Fully implemented in Bash, no external dependencies.
  • Optional Rust implementation for future hardened usage.
  • Uses reversible XOR encryption seeded from password-derived entropy.
  • Output passes checksum and entropy validation for BIP39 compliance.

Disclaimer and Research Frontiers

  • SCypher is cryptographically sound based on current understanding and careful testing.
  • Not yet formally audited.
  • Anyone using SCypher in mission-critical systems should conduct independent review.
  • Contributions welcome to strengthen, port, and test the system under diverse threat models.

Call to Action

Thank You

  • Designed with purpose.
  • Built to empower.
  • SCypher: because one seed should be enough.