Electrum documentation is now hosted at http://docs.electrum.org
How does Electrum work?
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.
Does Electrum trust servers?
Not really; 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
What is the seed?
The seed is a random phrase that is used to generate your private keys.
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Your wallet can be entirely recovered from its seed. For this, select the “restore wallet” option in the startup.
How secure is the seed?
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.
I have forgotten my password. What can I do?
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.
To restore your wallet from its seed phrase, create a new wallet, select the type, choose “I already have a seed” and proceed to input your seed phrase.
Get more answers at http://docs.electrum.org