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In online bitcoin gambling sites and land-based casinos, slot machines operate that depend on a random number generator or RNG to ensure randomness. But in casino slots, the random number is generated based on an equation to help secure the gambling session from hackers. There is no random-number generator in a bitcoin wallet.

According to Satoshi Labs software that works on bitcoin, a person could use the RNG to generate a bitcoin address that can then be spent with a private key generated from that output. Or a person could choose to keep their private key secret for now, in case an attacker compromises the key. It is even possible though, that if someone gains access to the wallet the original input, which was created from a number that could have been generated and stored by a random number generator, could be compromised.

As in all computer systems, it is necessary to have a backup, to store the key in case something goes wrong. The RNG can be changed in a number of ways, and it is likely that Satoshi’s RNG should have been used in this Bitcoin wallet.

This problem has been known in the bitcoin community for some time, but it doesn’t seem many people have noticed it because most users choose to generate their own private keys. But if bitcoin wallets were to adopt a multi-year backup strategy from now on, that would put users at greater risk of losing access to their bitcoin.

Bitcoin users should not be surprised that Satoshi didn’t take steps to protect users at the time. Satoshi could easily have considered this issue in advance. His code in the early days was extremely simple, and it could have been easily fixed in such a way that his code would still work today.

For example, a public key would not have been necessary for Satoshi to generate an address that could then be spent. Instead, such a public key would have been necessary only for a user who wanted to keep the private key secret for some time, just in case an attacker compromised such a public key.

Bitcoin wallet developers and users should have to take steps in future, when making use of a bitcoin address, to help prevent bitcoin addresses like these from being compromised.

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