Will quantum computing destroy Bitcoin? Will Satoshi Nakamoto's one million Bitcoins be compromised?

Dec 12, 2024

Compiled by: GaryMa, Wu Blockchain

Source: https://x.com/el33th4xor/status/1866235573503230357

https://x.com/epr510/status/1866727421455765917?s=19

https://x.com/jeffrey_hu/status/1866689266237182370

The recent release of Google’s quantum computing chip Willow has reignited the community’s discussion on “whether quantum computing will destroy Bitcoin.” Wu Blockchain has compiled the viewpoints of 3 KOLs to help readers understand from multiple perspectives why quantum computing will not currently destroy Bitcoin!

TLDR

Quantum computing does not currently pose a threat to Bitcoin but represents a potential risk. Presently, quantum computing lacks the capability to crack Bitcoin’s hash and signature mechanisms, ensuring its current security. However, Satoshi Nakamoto’s one million Bitcoins, due to their early public key format (P2PK), may be vulnerable to quantum attacks. The community can address future challenges through quantum-resistant cryptography or hard forks to freeze these assets.

Avalanche Founder: @el33th4xor

Despite the impressive advancements in quantum computing, it currently does not threaten cryptocurrency security for the following reasons:

1. Computational Characteristics: Quantum computing excels in specific tasks like factorization but struggles with reversing one-way hash functions. Moreover, the quantum attack window is extremely brief, making such attacks highly challenging.

2. Quantum-Resistant Design: Systems like Bitcoin only expose hashed public keys before a transaction, safeguarding dormant funds. Public keys are only revealed when broadcasting transactions, leaving quantum attackers with a narrow window — about 5 to 30 minutes in Bitcoin and just 1 second in Avalanche.

3. Future Defense Measures: Avalanche has proposed incorporating quantum-resistant lattice cryptography, with sufficient technical readiness despite larger signature sizes.

4. Satoshi’s Bitcoin Issue: Early “Pay to Public Key” (P2PK) formats are risky. As quantum threats grow, the Bitcoin community may consider freezing these older coins.

HashKey Group Head of Investment Research: Jeffrey Hu

Bitcoin’s protocol involves mining (hash-based) and transactions (elliptic curve signatures), both potentially affected by quantum algorithms:

1. Insufficient Current Capability: Attacking Bitcoin requires millions of physical quantum bits, while the Willow chip has only 105, far below threatening levels.

2. Limited Impact on Mining: Grover’s algorithm can accelerate hash collisions but does not break hash rules, resembling a more powerful miner.

3. Signature Security: Older P2PK and newer P2TR formats require caution, while hash-based formats like P2PKH and P2SH remain relatively safe. Proper usage habits, like avoiding address reuse and migrating to secure SegWit addresses, are recommended.

4. Future Countermeasures: Introducing hash-based Lamport signatures or quantum-resistant lattice cryptography could be implemented via soft forks for upgrades.

Tsinghua University Associate Professor: Hu Yilin

Quantum-resistant upgrades to Bitcoin may be challenging to achieve via soft forks, with key concerns being:

1. Legacy Coin Risks: Balances in addresses with exposed public keys may become vulnerable due to user negligence or lost private keys, necessitating permanent freezing of these coins via hard forks to prevent market disruption.

2. First-Mover Advantage: Early quantum computer adopters could potentially claim all dormant coins, causing severe market impacts, especially if this technology is controlled by corporations or governments.

Wu Blockchain

Will quantum computing destroy Bitcoin? Will Satoshi Nakamoto's one million Bitcoins be compromised?

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