- Some in the crypto community fear that Satoshi Nakamoto’s Bitcoin stash might be in danger due to Google’s new quantum computing chip, Willow.
- Despite concerns, analysts believe Google’s 105 qubit processing power isn’t enough to threaten Bitcoin’s SHA-256 and ECSDA algorithms.
- Bitcoin’s creator, Satoshi, left instructions to re-write the hash function if quantum computing ever cracked Bitcoin’s security.
- The market reacted with concern, causing a drop in Bitcoin price including ETFs, but Bitcoin quickly recovered and is now trading over $97k USD again.
If you had over a million Bitcoins, as the blockchain’s pseudonymous developer Satoshi supposedly has, you’d do everything in your power to protect them, right?
However, some in the community are getting a little angsty that Satoshi’s private stash might be in danger after Google revealed a new quantum computing chip. According to the tech company, the new product has provided a “thirty-year breakthrough” in the field.
It sounds a bit like something out of Harry Potter, but Google’s chip, called Willow, can process 105 qubits with improved error rates.
So what does this actually mean, and does the impressive technology pose a threat to older holdings of BTC like Satoshi’s?
Related: Aussie Analyst Says Recurring Bitcoin Pattern Signals Potential Price Explosion
Bitcoin’s Security Shield Too Strong for Current Quantum Computing Technology
In Bitcoin’s early days, transactions were completed using pay-to-public keys (P2PK), meaning that public keys are readily available on the blockchain.
Of course, users need the correct private key to “unlock” the holdings – but some in the industry fear such powerful computing could decrypt the keys.
If compromised, the outcome to Bitcoin could be disastrous, as most thieves would likely liquidate the cracked BTC and send its price plummeting.
However, several analysts have suggested the FUD surrounding Google’s announcement is premature.
While the 105 qubit processing power is immense, it’s nothing compared to what would be necessary to break Bitcoin’s SHA-26 and ECSDA algorithms.
According to Ben Sigman, a prominent Bitcoin analyst, attacks would require millions of physical qubits just to crack the ECSDA security algorithm. Then, they would be faced with the iron wall that is SHA-26 encryption.
Satoshi’s Quantum Solution: Bitcoin’s Contingency Plan
Even if Bitcoin was in danger, Satoshi Nakamoto even left instructions on what to do if quantum computing threatened the blockchain’s security.
In a forum post on Bitcoin Talk in 2010, Satoshi suggested re-writing the hash function after bringing Bitcoin’s blockchain back to its last stable point.
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 Nakamoto, Creator of Bitcoin
Despite the reassurances from many in the community, it hasn’t stopped others from considering a freeze on Nakamoto’s assets to prevent them from being liquidated.
The market also reacted with concern, as the world’s biggest spot Bitcoin ETF, IBIT, dropped 5.3% overnight.
However, as it tends to do, Bitcoin quickly recovered and is now trading over US $97k (AU $152k) again.
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