🔐Two Factor Authentication

Two-factor authentication (2FA) is an essential security feature that adds an extra layer of protection to your Electrum wallet.

Electrum integrates with TrustedCoin to provide two-factor authentication (2FA) for your wallet. This adds an extra layer of security by requiring a second authorization from TrustedCoin's remote server to co-sign transactions. Even if your computer is compromised, unauthorized access to your funds is prevented.

This guide explains how the TrustedCoin 2FA service works and how to set it up with Electrum.

Creating a Wallet

Restoring from seed

Even if TrustedCoin experiences downtime or a security breach, your coins remain safe as long as you possess your wallet's seed.

This security is achieved through a 2-of-3 multi-signature scheme. Your seed holds two master private keys, and the third public key can be derived from the seed itself, ensuring the restoration of your wallet addresses.

To restore your wallet from your seed, select the option "wallet with two-factor authentication" in Electrum. This instructs Electrum to utilize the specific seed format associated with two-factor authentication, allowing you to regain access to your funds.

Using the "restore" option

The "restore" option in Electrum should only be used if:

• You no longer wish to use TrustedCoin's two-factor authentication service.

• There is a technical issue preventing you from accessing your wallet through TrustedCoin.

Restoring your wallet through this method places two of the three multi-signature keys on your local machine. This negates the enhanced security offered by TrustedCoin's two-factor authentication, as your funds become vulnerable if your computer is compromised.

Therefore, only utilize this option if you are aware of the security implications and no longer require the extra layer of protection provided by TrustedCoin.