In light of the renewed conversations surrounding the potential risks to Bitcoin after Google unveiled its Willow quantum computing chip, the community has revisited Satoshi’s earlier insights in preparation for a scenario where SHA-256 might be compromised.
Google recently unveiled its quantum computing chip, Willow, which can resolve computational problems nearly 1025 times quicker than the most advanced supercomputers. This has caused panic within the Bitcoin community, which relies on solving mathematical problems to acquire BTC.
Crypto developers have also joined the FUD. Sirer, the founder and CEO of Ava Labs, is concerned about the potential threat to Satoshi Nakamoto’s 1M Bitcoin, which still employs the outdated technology posed by the advancement of quantum computing.
Satoshi’s advice on how to fix the problem
One community member mentioned a June 2010 BitcoinTalk post from Satoshi that provided some guidance on what to do if Bitcoin’s encryption were ever broken.
Satoshi wrote, “If SHA-256 became completely broken, I think we could come to some agreement about what the honest blockchain was before the trouble started, lock that in, and continue from there with a new hash function.”
Satoshi said that If the hash breakdown came more gradually, Bitcoin could transition to a new hash in an orderly way.
He explained, “The software would be programmed to start using a new hash after a certain block number. Everyone would have to upgrade by that time. The software could save the new hash of all the old blocks to make sure a different block with the same old hash can’t be used.”
Bitcoin is protected by two forms of encryption: The secure hash algorithm SHA-256 and the Elliptic Curve Digital Signature Algorithm (ECDSA) with secp256k1.
Bitcoin’s proof-of-work mechanism is reliant on the hashing algorithm SHA-256 to maintain data integrity and generate cryptographic hashes during mining. ECDSA is the digital signature algorithm employed to secure private keys and authenticate transactions.
Although Willow is a substantial advancement in quantum technology, its 105 qubits are far less than the number necessary to breach Bitcoin’s encryption algorithms.
However, Sirer warned about a bigger issue for the 1.1 million BTC estimated to be held by Satoshi’s early-mined coins. He explained that they used the very old Pay-To-Public-Key (P2PK) format, which reveals the public key and gives the attacker time to grind.
Quantum computing, however, remains a potential threat not only to Bitcoin but to all crypto entities, traditional bank accounts, secure file storage, and any system relying on current cryptographic standards.
A call to freeze Satoshi’s Bitcoin – Will this work
Quantum computers are particularly good at performing specific tasks, such as factoring large numbers, which poses a threat to conventional encryption methods like elliptic curve cryptography and RSA.
Still, they are significantly less effective against one-way hash functions, which are essential to various crypto protocols.
Emin Gün Sirer, therefore, advocates for the freeze of Satoshi Nakamoto’s Bitcoin based on this, as the pseudonymous creator of BTC’s early coins used the antiquated Pay-To-Public-Key (P2PK) format.
He asserted, “So, as QC gets threatening, the Bitcoin community might want to look into freezing Satoshi’s coins, or more generally, provide a sunset date and freeze all coins at P2PK UTXOs.”
Experts, however, maintain that the current threat to crypto is negligible, despite the fact that the technology is indeed revolutionary.
Willow, a Google product, has not yet reached that stage. However, Error rates and scalability are among the obstacles that contemporary quantum computers, such as Willow, encounter.
To decrypt Bitcoin’s encryption, a quantum computer would require millions of error-corrected “logical qubits,” which is significantly more than Willow’s 105 physical qubits.
Not all crypto execs are worried. Vitalik Buterin, the co-founder of Ethereum, has prided himself on the technology he based the ETH ecosystem on. He contributed to the conversation, saying, “Ethereum is ready even if quantum computers arrive tomorrow.”
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