The [`BIP39KeyManager`](/api/org/bitcoins/keymanager/bip39/BIP39KeyManager) stores a [`MnemonicCode`](/api/org/bitcoins/core/crypto/MnemonicCode) on disk which can be decrypted and used as a hot wallet.
This means that ALL SIGNING should be done inside of the key-manager, and private keys should not leave the key manager.
This makes it easier to reason about the security characteristics of our private keys, and a way to provide a uniform interface for alternative key storage systems (hsm, cloud based key storage, etc) to be plugged into the bitcoin-s library.
Currently bip39 password is supported at the library level, but is not supported for end users using the server project.
[You can see that the bip39 password is hard coded to `None` here](https://github.com/bitcoin-s/bitcoin-s/blob/e387d075b0ff2e0a0fec15788fcb48e4ddc4d9d5/app/server/src/main/scala/org/bitcoins/server/Main.scala#L53).
There is a password that is used to encrypt your mnemonic seed on disk, but that password is hard coded to a default value.
THIS MEANS THAT YOUR MNEMONIC SEED CAN TRIVIALLY BE STOLEN IF AN ATTACKER CAN ACCESS YOUR HARD DRIVE.
TAKE PROPER OPSEC PRECAUTIONS.
Overall the key manager module should be considered insecure. For this release, it is more about setting up the module
as a logical distinction for further development in subsequent releases.
A popular way for bitcoin wallet's to represent entropy is [BIP39](https://github.com/bitcoin/bips/blob/master/bip-0039.mediawiki) which you [can use in bitcoin-s](/api/org/bitcoins/core/crypto/BIP39Seed)
2. [`purpose`](/api/org/bitcoins/core/hd/HDPurpose) which represents what type of utxo this `KeyManager` is associated with. The specification for this is in [BIP43](https://github.com/bitcoin/bips/blob/master/bip-0043.mediawiki)
3. [`network`](/api/org/bitcoins/core/config/NetworkParameters) what cryptocurrency network this key manager is associated with
This controls how the root key is defined. The combination of `purpose` and `network` determine how the root `ExtKey` is serialized. For more information on how this works please see [hd-keys](../core/hd-keys.md)