This smells a bit like the "Power One-Time-Pad" mechanism a few years ago, which sucked down millions in funding before flaming out. A popular flaw in these kind of systems is the belief that a PRNG is cryptographically strong (or rather, not recognizing that once you use one, you've reduced your strength to the strength of the prng... Apple patented a "reusable one-time-pad" mechanism a decade ago, prompting the idea that one *should* have software patents so you can prevent people from using the really *bad* ideas :-)