Midterm 01 - Process: Wallet Creates Bitcoin Account

Fall 24

What does a bitcoin wallet use to generate a bitcoin account

private key, public key, bitcoin address

What ensures the public key cannot be reversed to find the private key?

The private key is transformed into the public key using a one-way function based on Elliptic Curve Cryptography, which makes reversing it mathematically infeasible.

What two hashing algorithms are applied to the public key to create a Bitcoin address?

SHA-256 and then with RIPEMD-160

What is the role of the Bitcoin address in the account creation process?

Bitcoin address is derived from the public key and used to receive payments. It is safe to share publicly.

Why is there no risk of two people having the same Bitcoin account or keys?

the number of possible private keys ensures that it is statistically impossible for two users to generate the same keys or account.