Per my understanding, the recover phrase is NOT the private key and cannot generate the private key. Normally a passphrase is used to encrypt/decrypt the private key file so that in case the private key file itself falls in the wrong hands it cannot be used without first decrypting it using the passphrase. Can someone confirm?
If this is the case then losing the private key itself means losing access to the ADA even if I have the passphrase since the passphrase does not generate the private key. The only was a recovery key can be used to recover the wallet in this case is if the private key is backed up somewhere. So how does Daedalus recover the wallet using the passphrase? Do they have my private key backed up somewhere?
Additionally, if this is correct then it is critical to backup one’s private key and not only the passphrase as each independently is useless, both the private key and passphrase are required to spend from the wallet. I could not find where exactly is the private key in my Daedalus wallet and the documentation is not clear on this.
Please clarify or let me know if my understanding is incorrect.