Electrum’s focus is speed, with low resource usage and simplifying Bitcoin. Startup times are instant because it operates in conjunction with high-performance servers that handle the most complicated parts of the Bitcoin system.
the Electrum client never sends private keys to the servers. In addition, it verifies the information reported by servers, using a technique called Simple Payment Verification
The seed is a random phrase that is used to generate your private keys.
Example of a seed:
group gain adore false green cheat stop guy fur club giggle rain
The seed phrase created by Electrum has 132 bits of entropy. This means that it provides the same level of security as a Bitcoin private key (of length 256 bits). Indeed, an elliptic curve key of length n provides n/2 bits of security.
It is not possible to recover your password. However, you can restore your wallet from its seed phrase, and choose a new password. If you lose both your password and your seed, there is no way to recover your money. This is why we ask you to save your seed phrase on paper.
Seriously, you should be using the Electrum wallet with its 12 word seed. I can't tell you how much simpler it's made my Bitcoin experience.
It's comforting knowing that no matter how many addresses I create in a wallet, or if my computer starts on fire, my wallet is backed up as long as I know those 12 words.
If you're not using a 12 word seed wallet you need to be. You never have to worry if your backup file is up to date ever again.
