How is it possible to generate an encrypted private key without knowing the passphrase needed to decrypt it?

The BIP38 open-source standard implements an advanced cryptography technique called double-blind encryption. This allows an encrypted private key and its corresponding public key to be generated from an encrypted passphrase. Since the passphrase is encrypted, the party who generates the encrypted private key does not know the passphrase needed to decrypt it. In the context of BIP38, the encrypted passphrase is called an intermediate code. In Ballet’s two-factor key generation process, the passphrase and intermediate code are generated in one secure facility and then the intermediate code is sent to another secure facility where the encrypted private key is generated from the intermediate code. For more information on Ballet’s patented 2FKG manufacturing process, please visit:

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