Ava Labs CEO Calls to Freeze Satoshi’s Bitcoin Over Quantum Threats

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As a seasoned crypto investor with over a decade of experience navigating the digital frontier, I find Emin Gün Sirer’s suggestion to freeze Satoshi Nakamoto’s Bitcoin intriguing yet questionable. While quantum computing is undeniably a game-changer, its potential impact on cryptocurrency security remains relatively minimal at this point.

Emin Gün Sirer, the founder and CEO of Ava Labs, suggested a temporary halt on accessing approximately 1.1 million Bitcoins that are believed to be owned by Satoshi Nakamoto. This action was proposed due to perceived weaknesses in the encryption methods used in early Bitcoin wallets.

Sirer proposed such a significant action since quantum computing becomes potent enough to take advantage of the outdated Pay-to-Public-Key (P2PK) structures found in Nakamoto’s initial digital wallets.

Emin Gün Sirer Wants Satoshi’s Bitcoin Frozen

As a crypto investor, I’ve been closely following the buzz surrounding quantum computing. Lately, significant strides in this field have ignited debates about its potential repercussions on digital currency safety. Despite the undeniable revolutionary nature of quantum technology, experts are quick to point out that the current risk to cryptocurrencies is minimal. This is primarily due to the robustness of underlying cryptographic structures and continuous adjustments in security protocols.

A representative from Ava Labs pointed out that quantum computing can simplify specific tasks, such as factoring numbers, but challenges like reversing one-way hash functions remain unchanged. Moreover, the feasibility of a quantum computer launching an attack is limited by the platform it operates on, making the role of a quantum attacker quite challenging.

Quantum computers outperform in certain tasks, notably factoring large numbers, which poses a threat to conventional encryption techniques such as RSA and elliptic curve cryptography. However, they are less impactful against one-way hash functions, essential to many cryptocurrency regulations. Thus, Emin Gün Sirer advocates for the preservation of Satoshi Nakamoto’s Bitcoin, since the anonymous BTC creator’s early coins were in the outdated Pay-To-Public-Key (P2PK) format.

“There is the issue of Satoshi’s 1m Bitcoin. Haseeb just reminded me that Satoshi’s early-minded coins used the very old Pay-To-Public-Key (P2PK) format, which reveals the public key and gives the attacker time to grind, for the mother of all cryptography bounties. Modern Bitcoin wallets or modern systems like Avalanche don’t use P2PK, but it was there in the early days of Bitcoin. 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,” he said.

The original method employed by Satoshi Nakamoto for mining about a million Bitcoins exposes its public key openly. Notably, apart from Ava Labs’ founder, Ethereum co-founder Vitalik Buterin is another crypto executive who has voiced opinions on quantum computing.

Community Reacts Amid Google’s Williow Quantum Chip Hype

Emin Gün Sirer’s proposal has ignited a broad discussion, with some people contending that it weakens the fundamental principle of unchangeable ownership in cryptocurrencies.

“Sunsetting Satoshi’s coins fundamentally challenges crypto’s ownership logic,” a user noted on X.

Some believe that if the coins are frozen, it could bring Nakamoto back into the picture, possibly causing instability within the crypto sphere. This discussion arises amidst ongoing speculation about who exactly Nakamoto is.

Discussions about this topic are centered around Google’s revolutionary quantum computer chip, named Willow. This cutting-edge technology has sparked intense discussions, especially in the realm of cryptocurrency. On Monday, it was announced that Willow contains 105 qubits and can solve problems in just five minutes that would take classical computers over 10 septillion years—a timeframe longer than the universe’s age.

As a crypto investor, I’m thrilled to announce the arrival of Willow – our cutting-edge quantum computing chip. This groundbreaking technology has a remarkable feature that allows errors to diminish exponentially as we increase the number of qubits, solving a 30-year conundrum in the field. In comparison tests, Willow accomplished a typical computation within just 5 minutes, while it would take a top-tier supercomputer over 10^25 years – an amount of time that surpasses the age of the universe. Such is the power and efficiency of Willow, as confirmed by Sundar Pichai, CEO of Google and Alphabet.

Bitcoin uses complex mathematical processes called SHA-256 for mining, which are tough for conventional computers to crack, but may become susceptible when faced with the colossal processing abilities of a quantum computer. In principle, quantum computers could potentially decipher private keys, posing a risk to digital wallets and transaction safety.

However, Google’s Willow is not there yet. Current quantum computers, including Willow, face challenges like error rates and scalability. To break Bitcoin’s encryption, a quantum computer would need millions of error-corrected “logical qubits,” far beyond Willow’s 105 physical qubits.

According to Chris Osborn, a leading figure in quantum computing and the creator of the Dialect project within the Solana ecosystem, Willow is making advancements in error correction. Essentially, it transforms less dependable “physical qubits” into more trustworthy “logical qubits.

However, breaking encryption requires 5,000 logical qubits, equivalent to millions of physical qubits. Willow’s 105 physical qubits are just the beginning.

Osborn stated that he has invested more than a decade into quantum computing and holds a deep affection for it. However, he believes the ongoing debates in cryptocurrency about cracking encryption codes are entirely focusing on peripheral matters, or as he put it, they’re just ‘nitpicking.’

Although current dangers to Bitcoin are relatively small, the crypto community remains vigilant. Vitalik Buterin, a key figure in Ethereum, has encouraged the use of quantum-safe encryption methods, underscoring the importance of being prepared.

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2024-12-10 14:18