Suppose we read a file as a binary vector X. Then we flip X to obtain Y, such that last element of X is the first element of Y and so on. Now X and Y vectors are EX-ORed to obtain vector Z. This vector Z is further EX-ORed with a random binary sequence,U. Some random bits selected from this final binary sequence are required to be used as a key.
Now the question is, what minimum number of bits should be chosen so that the key is secure.