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Europe Opens First IBM Quantum Data Center Amid Bitcoin Quantum Threats

Bitcoin at 17: Assessing Quantum Computing Risks and the Push for Quantum-Resistant Security Measures

  • The Bitcoin white paper marking the start of Bitcoin was published 17 years ago by Satoshi Nakamoto.
  • Quantum computing could threaten Bitcoin’s cryptography, specifically its proof-of-work and mining process.
  • Current quantum computers are far too limited to break Bitcoin’s security, requiring millions of qubits compared to existing machines with just over 100.
  • Vulnerable bitcoins mined early, with visible public keys, could be targeted if quantum attacks become possible.
  • A proposal called Bitcoin Improvement Proposal 360 aims to introduce quantum-resistant signatures, but reaching consensus for such a change will be challenging.

Today marks 17 years since the release of the Bitcoin white paper, authored by the pseudonymous creator known as Satoshi Nakamoto. This document explains how Bitcoin operates as a decentralized digital currency. The white paper remains the foundational text for this technology, which continues to grow in importance worldwide.

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The rise of quantum computing poses potential risks to Bitcoin. Its proof-of-work algorithm relies on a cryptographic hash function called SHA-256. Quantum advances could disrupt the mining process and the security of transactions, especially since unconfirmed transactions reveal public keys that might be exploited for double-spending.

However, current quantum hardware is not yet capable of such attacks. Breaking Bitcoin’s cryptography would require between 2.5 and 25 million physical qubits. In comparison, Google’s latest quantum processor, the Willow chip, contains approximately 105 physical qubits, falling short by four to six orders of magnitude.

A particular area of concern is the early bitcoins mined by Satoshi and others. These coins have publicly visible keys, making them vulnerable if quantum attacks arise. Over one million bitcoins could be at risk, sparking debate about how to secure or handle those assets.

In response, a draft called Bitcoin Improvement Proposal 360 has been introduced by developer Hunter Beast. This proposal seeks to add post-quantum cryptographic signature methods, such as Dilithium, Falcon, or SPHINCS+, through new address types named “pay-to-quantum-resistant-hash.” Implementing this would likely require a soft fork—a backward-compatible software upgrade requiring community agreement.

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As the Bitcoin community has experienced with major upgrades like SegWit and Taproot, achieving consensus can be a lengthy and complex process. According to the proposal’s author, discussions and agreement on adopting quantum-resistant measures could take up to two years.

While quantum computing is not an immediate threat, this issue reflects the ongoing challenges Bitcoin faces as it matures and gains influence in global finance and geopolitics. The future security of Bitcoin depends in part on how its users, developers, and investors prepare for possible technological advances.

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