In their new wallets such as Trezor safe 3 or Trezor safe 5, the company suggests switching to the new 20-word SLIP39 backup. Whether to create a backup in the new format or to create it in the more familiar format of 12 or 24 words of BIP39 standard we will consider below.
By default, the user is offered to create a single-share backup of 20 words (with the option to upgrade to multi-share backup) or go straight to creating a multi-share backup.
The advantage of multi-share backup is that you split your secret phrase into several parts and set a threshold (minimum number of parts) to restore access to your funds and if an attacker gains access to one part, he will not be able to access your funds.
Still, if an attacker gains access to one part of the secret, he will be able to obtain information about the total number of parts into which your backup is divided and the minimum threshold.
This information is contained in the 3rd and 4th words of any of the parts.
For example, if you create a regular single-share backup, then the 3rd and 4th words will always be: academic academic.
In multi-share backup, the 4th word is responsible for the total number of parts:
For 2 parts: easy
For 3 parts: leader
For 4 parts: romp
For 5 parts: academic
For 6 parts: easy
For 7 parts: leader
For 8 parts: romp
And so on.
There are a total of 4 possible options for the fourth word. The number of minimum parts (threshold) required to restore access to funds can be determined by the third word using a
converter.
Example: Let's say we have one part of the secret:
eraser senior beard leader blanket verify declare exercise rumor year submit custody spine expand document always round photo prevent sugar
Our fourth word is: leader, which means the total number of secrets can be 3. Now we launch the converter and generate phrases (click on the 128bits button), set 3 in Total shares, and select the minimum number of parts in Threshold. In our example, with Threshold equal to 2, we find in the second phrase the word: beard which is the 3rd word of our secret. If the searched word is not found, then set the Total Shares parameter to 7, since the 4th word: leader can also refer to a secret divided into 7 parts. And again we select the Threshold parameter in the search for a match of the third word. But, I don’t think in practice anyone will split their backup into more than 5 parts.
Thus, an attacker, having access to one part of your backup, will be able to assess his prospects. In this case, he will need to gain access to only one more part of the backup.
So should you switch to the new 20-word backup or continue to use the familiar 12 or 24 words?
In my opinion, switching to a single-share backup of 20 words makes sense only if in the future you decide to switch to multi-share backup, which will not be difficult to do with the help of Trezor suite.
In case of creating multi-share backup you need to understand what information an attacker will have when accessing one part of the backup.
There are no other special advantages of a 20-word backup over a 12-word backup, in both cases random entropy of 128 bits is used.