Bitwise argued that quantum devices like Google’s Willow are too weak to break the Bitcoin network.
- A Bitwise report said on Friday that traditional financial institutions are at a much larger risk to quantum computing than Bitcoin.
- It noted that interfering with Bitcoin’s mining layer requires more strength than current or future quantum devices.
- If Satoshi-era Bitcoin are tampered, crypto markets could face pressure, said the report.
Bitwise on Friday said that traditional finance likely faces a greater near-term quantum risk than Bitcoin (BTC).
The company’s report contested the view that quantum computing could break Bitcoin’s Elliptic Curve Digital Signature Algorithm (ECDSA). This comes after Google’s recent advancements on its 105-qubit “Willow” processor, which has caused investors to re-focus on the subject, as per Bitwise.
It noted that “Bitcoin’s network is overwhelmingly secure”, running at about one zettahash per second, which is more computing power than a million El Capitan-class supercomputers put together. The strength required to interfere with Bitcoin’s mining layer is far greater than that of existing quantum machines and even those anticipated in the near future.
Banks Could Face Bigger Risk
The report said that Bitcoin has time to adapt but traditional financial institutions may suffer larger near-term risks due to their reliance on long-lived RSA and ECC cryptographic methods, which quantum computers can break “far earlier than any realistic threat to Bitcoin’s decentralized architecture”. If quantum computers breach RSA and ECC, bank security might collapse, allowing attackers to view private information or even steal funds.
Bitcoin’s price was trading at around $88,769.09 as of writing. The apex cryptocurrency is down nearly 4% in the last 24 hours. On Stocktwits, retail sentiment around BTC is in ‘bearish’ territory.
Quantum Threat Advances
In a post on X, André Dragosch, Director and Head of Research for Bitwise’s Europe, explained that “estimates suggest 4.5M + BTC may sit in dormant wallets unlikely to upgrade to quantum-resistant signatures – including Satoshi-era coins.” A worst-case scenario could create real market pressure if these Satoshi-era coins move around.
The industry’s view on the timing for so-called “Q-Day” varies greatly, said Dragosch. He noted that analyst Charles Edwards sees a 20% possibility of Bitcoin breaking by 2029, while Ethereum co-founder Vitalik Buterin believes ‘Q-Day’ could come as near as 2030. Meanwhile, Blockstream CEO Adam Back predicts a larger window of 2045-2065.
“Bitcoin’s network remains overwhelmingly secure,” Dragosch wrote. “Traditional financial institutions, meanwhile, may feel quantum pressure long before Bitcoin does.”
Read also: Bitcoin Drops Below $92,000 With XRP, Solana Leading Losses Among Major Tokens – Analyst Blames Banking Liquidity Crunch
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