Hi,

I am attempting to design a piece of software which 1] uses a blockchain, 2] uses Bitcoin as a currency within this blockchain.

Unfortunately I have no crypto experience and low dev experience so the details of this are a little over my head. Does anyone know how a distributed piece of software might sign Bitcoin transactions? Is that possible somehow?

More details here (<2 pages): https://github.com/psztorc/Truthcoin/raw/master/docs/Development%20Plans/Design%20Question.pdf

I sketched up an idea where an application watches the longest valid chain of Blockchain 2 (B2), and (as new B2 blocks are discovered) takes the 'withdrawal requests' embedded in a "confirmed block" (say, 20 blocks beneath the current), and constructs/signs their Bitcoin transactions.

I have some questions about this:
* Can we derive (and use) private keys for an application such that they are never known to users? Can I prove that I don’t know/can’t use a private key?
* Can we hide private keys in an application that we widely distribute? To what extent could this application be open-source/trustworthy?
* Can we use randomness (chaotic inputs, or iterative randomness with block-hashes/nonce) to derive keys? Can such a piece of software copy itself or be copied?

* Is there a better way?

Thanks!