October 25, 2020

BitJackass Diary Part 1

Since 2010, during the study of cryptography and cryptocurrencies, I have developed a certain vision in these areas.
In the most understandable language I will share with the readers of my blog and channel my experience and accumulated knowledge.

Bitcoin is aerobatics in the world of technology.
Bill Gates, Microsoft co-founder, investor

Bitcoin wallet - set of generated privatekeys. A public key can be generated unambiguously from a private key, and a public Bitcoin wallet number (which users of the system see) can be obtained from the public key. Private keys and public keys are hidden in the technical implementation of the wallet program.

Inverse translation (from address to publickey, and from a public key to a private one - not available). An asymmetric encryption algorithm (SHA-256 algorithm) is used for these transformations. That is, when a wallet is created, the computer generates a certain number of private keys. It is assumed that each of the private keys will be used only once for receiving and once for transferring a transaction (this is an “ideal” model of work in the Bitcoin system, for anonymity purposes).

But, nothing prevents getting on the samethe address of the coin many times, and transmit them further, since not only the address of the recipient, but also the number of the incoming transaction is used to identify the “coin”.

Private keys are randomly generated, and if the key is generated correctly, statistically the possibility that your private keys will be decrypted is extremely negligible.

If you use a verified wallet andcontrol his private keys, you will not suffer 100%. People who use the services of third parties, such as exchanges or online wallets, should be worried.

Regards, BitJackass.