Some in the cryptocurrency community are worried that Google's new quantum computing chip, Willow, could put Satoshi Nakamoto's Bitcoin stash at risk. Despite the concerns, analysts believe that Google's 105 qubit processing power is not enough to threaten Bitcoin's SHA-256 or ECSDA algorithms. Satoshi, Bitcoin's creator, left instructions to rewrite the hash function if quantum computing breaks Bitcoin's security. The market reacted with concern, causing a drop in Bitcoin prices, including ETFs, but Bitcoin quickly recovered and is now trading above $97,000 again.
If you had more than 1 million Bitcoins, as pseudonymous blockchain developer Satoshi allegedly has, wouldn't you do everything in your power to protect them?
But some in the community are a little worried that Google's announcement of a new quantum computing chip could put Satoshi's private stash at risk. The technology company says the new product represents the “first breakthrough advancement in 30 years” in the field.
Sounding a little like something out of Harry Potter, Google's chip called Willow can handle 105 qubits and has improved error rates.
So what does this actually mean and does this amazing technology pose a threat to old BTC holdings like Satoshi?
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Bitcoin's security shield is too strong for current quantum computing technology
In the early days of Bitcoin, transactions were completed using public key payments (P2PK). This means that the public key is immediately available on the blockchain.
Of course, users need the correct private key to “unlock” their holdings, but some in the industry are concerned that such powerful computing could crack the keys.
In case of a breach, the consequences could be dire for Bitcoin as most thieves are likely to liquidate the cracked BTC and cause the price to plummet.
However, several analysts suggest that the FUD surrounding Google's announcement is premature.
The processing power of 105 qubits is immense, but it's nothing compared to the power needed to break Bitcoin's SHA-26 and ECSDA algorithms.
Willow's power: Willow has 105 qubits, which is great for quantum experiments, but nowhere near the amount needed to crack Bitcoin's encryption.
Experts estimate that around 1 million high-quality qubits will be needed to strengthen Bitcoin's security.
— Cinemad Producer (@CinemadProducer) December 9, 2024
According to prominent Bitcoin analyst Ben Sigman, an attack would require millions of physical qubits just to crack the ECSDA security algorithm. Then you will be faced with an ironclad wall: SHA-26 encryption.
Google Willow Quantum and Bitcoin Encryption
Today, Google announced that Willow has reached 105 qubits and improved error rates. Should Bitcoiners worry?
🚫 Short answer: No.
🔒 Bitcoin relies on two types of encryption.
1️⃣ ECDSA 256: Vulnerable to “Shor's algorithm”… pic.twitter.com/Baa8lwUVM6
— Ben Sigman (@bensig) December 9, 2024
Satoshi's Quantum Solution: Bitcoin Contingency Plan
Satoshi Nakamoto even left instructions on what to do if quantum computing threatens the security of the blockchain, even if Bitcoin is at risk.
In a 2010 Bitcoin Talk forum post, Satoshi proposed rewriting the hash function after returning the Bitcoin blockchain to its last stable point.
If SHA-256 breaks completely, I think we can come to some agreement on what an honest blockchain is before we run into trouble, lock it in, and proceed from there with a new hash function. Masu.
Satoshi Nakamoto, the creator of Bitcoin
Despite reassurances from many in the community, that hasn't stopped others from considering freezing Nakamoto's assets to prevent liquidation.
The market reacted with concern as IBIT, the world's largest Bitcoin spot ETF, fell 5.3% overnight.
However, as is often the case, Bitcoin quickly recovered and is now trading above USD 97,000 (AU 152,000) once again.
