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+# aezeed
+
+[https://github.com/lightningnetwork/lnd/pull/773](In this PR),
+we add a new package implementing the aezeed cipher
+seed scheme (based on [http://web.cs.ucdavis.edu/~rogaway/aez/](aez) ).
+
+This is a new scheme developed that aims to overcome the
+two major short comings of BIP39: a lack of a version, and a lack of a
+wallet birthday. A lack a version means that wallets may not
+necessarily know how to re-derive addresses during the recovery
+process. A lack of a birthday means that wallets don’t know how far
+back to look in the chain to ensure that they derive all the proper
+user addresses. Additionally, BIP39 use a very weak KDF. We use
+scrypt with modern parameters (n=32768, r=8, p=1). A set of benchmarks has
+been added, on my laptop I get about 100ms per attempt):
+
+```bash
+⛰ go test -run=XXX -bench=.
+
+goos: linux
+goarch: amd64
+pkg: github.com/lightningnetwork/lnd/aezeed
+BenchmarkTomnemonic-4                 20          93280730 ns/op        33559670 B/op         36 allocs/op
+BenchmarkToCipherSeed-4               10         102323892 ns/op        36915684 B/op         41 allocs/op
+PASS
+ok      github.com/lightningnetwork/lnd/aezeed  4.168s
+```
+
+Aside from addressing the shortcomings of BIP 39 a cipher  seed
+can: be upgraded, and have it's password changed,
+
+Sample seed:
+
+```text
+ability dance scatter raw fly dentist bar nominee exhaust wine snap super cost case coconut ticket spread funny grain chimney aspect business quiz ginger
+```
+
+## Plaintext aezeed encoding
+
+The aezeed scheme addresses these two drawbacks and adds a number of
+desirable features. First, we start with the following plaintext seed:
+
+```text
+1 byte internal version || 2 byte timestamp || 16 bytes of entropy
+```
+
+The version field is for wallets to be able to know how to re-derive
+the keys of the wallet.
+
+The 2 byte timestamp is expressed in Bitcoin Days Genesis, meaning that
+the number of days since the timestamp in Bitcoin’s genesis block. This
+allow us to save space, and also avoid using a wasteful level of
+granularity. With the currently, this can express time up until 2188.
+
+Finally, the entropy is raw entropy that should be used to derive
+wallet’s HD root.
+
+## aezeed enciphering/deciperhing
+
+Next, we’ll take the plaintext seed described above and encipher it to
+procure a final cipher text. We’ll then take this cipher text (the
+CipherSeed) and encode that using a 24-word mnemonic. The enciphering
+process takes a user defined passphrase. If no passphrase is provided,
+then the string “aezeed” will be used.
+
+To encipher a plaintext seed (19 bytes) to arrive at an enciphered
+cipher seed (33 bytes), we apply the following operations:
+
+* First we take the external version an append it to our buffer. The
+external version describes how we encipher. For the first version
+(version 0), we’ll use scrypt(n=32768, r=8, p=1) and aezeed.
+* Next, we’ll use scrypt (with the version 9 params) to generate a
+strong key for encryption. We’ll generate a 32-byte key using 5 bytes
+as a salt. The usage of the salt is meant to make the creation of
+rainbow tables infeasible.
+* Next, the enciphering process. We use aez, modern AEAD with
+nonce-misuse resistance properties. The important trait we exploit is
+that it’s an arbitrary input length block cipher. Additionally, it
+has what’s essentially a configurable MAC size. In our scheme we’ll use
+a value of 8, which acts as a 64-bit checksum. We’ll encrypt with our
+generated seed, and use an AD of (version || salt).
+* Finally, we’ll encode this 33-byte cipher text using the default
+world list of BIP 39 to produce 24 english words.
+
+## Properties of the aezeed cipher seed
+
+The aezeed cipher seed scheme has a few cool properties, notably:
+
+* The mnemonic itself is a cipher text, meaning leaving it in
+plaintext is advisable if the user also set a passphrase. This is in
+contrast to BIP 39 where the mnemonic alone (without a passrphase) may
+be sufficient to steal funds.
+* A cipherseed can be modified to change the passphrase. This
+means that if the users wants a stronger passphrase, they can decipher
+(with the old passphrase), then encipher (with a new passphrase).
+Compared to BIP 39, where if the users used a passphrase, since the
+mapping is one way, they can’t change the passphrase of their existing
+HD key chain.
+* A cipher seed can be upgraded. Since we have an external version,
+offline tools can be provided to decipher using the old params, and
+encipher using the new params. In the future if we change ciphers,
+change scrypt, or just the parameters of scrypt, then users can easily
+upgrade their seed with an offline tool.
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