Bitcoins are generated by adding each time to the key an additional key generated with the HASH function, which as is known can not go back. The miner commits the algorithm to generate new currency on the occasion of a transaction, which can be rejected by the system. For a long time not enough normal Pcs, but dabbled in university researchers with taxpayers’ money. Now to generate bitcoins it takes supercomputers to be busy for hours. The secret key thing leads to losing everything if you lose the private key which is the one that gives you access to the portal to do the transactions. Using the RSA private-key public-key algorithm the System can verify that the private key is correct without possessing it. Already in 2012 appeared on the newspaper Repubblica in Italy an article by researchers who had managed to derive public and private keys on 4% of the batch analyzed.
This is because the pearl theory of prime numbers linking public key and private key, and these prime numbers must be generated randomly. In reality in computer science there are no random numbers but pseudo random numbers generated by an algorithm. Analyzing a large number of keys you can identify the generator algorithm and then identify the keys.
Now computers are much more powerful and, considering the news of unforeseen who have lost the private key and therefore can no longer access their account, since the transactions are public just try a transaction with any user. If he’s not answering, he probably has a blocked account. So given the huge amount of money at stake, the 2012 study can be deepened and it becomes possible to take over blocked accounts.
All this complex mechanism of generating with longer and longer keys serves two main purposes, to maintain the anonymity of the investor, even if on this I have some doubts because the transactions are traced and therefore identifies the computer from which the transaction started, and above all guarantee the authenticity of the electronic product. With a similar mechanism was made an auction of a web painting, so as to give a certificate of authenticity to a product that otherwise once placed on the net could be scopiazzato free of charge. But to guarantee the authenticity of the transaction, there are simpler and less harmful systems for the planet.
As we will see we have a solution that solves all the problems of cryptocurrencies.