Thank you for your reply.

Could you elaborate how another wallet provider does recognize what wallet has to be restored when typing in the 12-mnmemoric seed phrase?

For example:


1. Wallet got created at Exodus for example and the 12-mnemoric seed phrase has been backed up and 100$ worth of bitcoin has been sent to it.

2. Now after 2 years this seed phrase is used at electrum to restore it, how does electrum know what kind of wallet adresses are behind these seed phrase?


because there is no central database to gather the information as its decentralized?

So is there anything encrypted behind these 12 words which gets decrypted? So all the providers uses the same script to generate a compatible seed phrase for wallets? and how do they avoid that a seed phrase wont be generated twice?