Why were lost bitcoin private keys made unrecoverable?
Is there a way to do this and if not shouldn't a way be created since people will lose their money.
Bitcoin Stack Exchange is a question and answer site for Bitcoin crypto-currency enthusiasts. It only takes a minute to sign up.Sign up to join this community
Technically, private keys are unrecoverable because of the properties of the ECDSA algorithm used in. Bitcoin uses ECDSA algorithm to create a public key from your private key, which makes it impossible to compute back your private by knowing your public key(address). After BIP 39, we can recover private keys from 12 word seed phrase. It's good. But if it too lost, nothing can be done. What can we do is write down the seed phrase somewhere safe. That's all.
Key generation in Bitcoin, as in many cryptographic protocols, is based on generating a random value used to create the private key, and then deriving the public key from it.
In Bitcoin such random value should be picked uniformly at random from a 256 bit space. There are
115792089237316195423570985008687907853269984665640564039457584007913129639936 different values in 256 bits, so if the source of randomness is good enough the odds of selecting the same value twice are negligible. Therefore, if you lose your private key, generating the same again is almost imposible, at least nowadays.
If you create independent private keys, it is infeasible to recreate them due to the vast size of the key space.
However, there are some methodologies to derive keys from an initial seed that is easy to backup and can be used to deterministically recreate the same keys again. These schemes are generally referred to as "Hierarchical Deterministic Wallets".
Most wallets today use such a scheme to create private keys.