What is a master password?

At Acronym, the master password is a critical security feature used to protect your accounts and digital assets stored on Acronym. It serves as the ultimate key to your vault and is required for various security-sensitive actions, such as decrypting private keys and signing transactions. Here are the key points about the master password:

1. Security Role The master password acts as a gatekeeper for accessing the vault. It is used to decrypt a portion of the private key stored in cold storage, which is necessary for signing transactions without exposing the private key itself.

2. Account Setup When you create an Acronym Vault, you are prompted to set up a master password. This password is essential for securing the vault and is required to reset two-factor authentication (2FA) if needed.

3. Transaction Signing The master password is used to authorize transactions by generating a secure digital signature, ensuring that the private key remains protected in cold storage.

4. Recovery If you lose access to your 2FA, the master password serves as a backup to regain access to your account.

5. Encryption The master password is encrypted and stored securely, ensuring that even Acronym cannot access it. It is used to encrypt the private keys and other sensitive data.