Originally published on: December 10, 2024
Recent advancements in quantum computing have raised concerns about the security of Bitcoin’s earliest transaction formats and the potential threat they pose to Satoshi Nakamoto’s 1 million BTC. The debate over whether these coins should be frozen to prevent exploitation has ignited discussions within the crypto community.
The vulnerability of Bitcoin’s early transaction format, pay-to-public-key (P2PK), which exposes public keys on the blockchain, has some experts worried. According to Emir Sirer, founder and CEO of Ava Labs, quantum computers could exploit these P2PK transactions by deriving private keys from public keys.
While freezing Satoshi’s coins may seem like a necessary precaution to some, others argue that it goes against the principles of decentralization and immutability that Bitcoin stands for. Nevertheless, with the high value of Satoshi’s 1 million BTC, it remains a prime target for quantum attackers that could disrupt the market.
Satoshi’s BTC is stored in the vulnerable P2PK outputs, a format no longer widely used due to its exposure of public keys. The introduction of the P2PKH format, which masks public keys behind a hash until the coins are spent, has made it more difficult for quantum attacks to occur.
While the vulnerability of P2PK outputs to quantum threats is not an immediate concern, it could become one as quantum computing progresses. Freezing Satoshi’s holdings would require changes to BTC’s consensus rules, potentially through a Bitcoin Improvement Proposal (BIP) that would need broad community agreement.
The possibility of freezing Satoshi’s coins raises ethical questions about the core ethos of cryptocurrencies. Bitcoin was created to be an immutable ledger, and altering its history could jeopardize its decentralized nature. However, some argue that Satoshi’s unique case warrants an exception due to the potential impact on the crypto market.
As quantum computing advances and the risk of a quantum attack on Satoshi’s 1 million BTC grows, the question remains: could this event lead to Satoshi revealing themselves? Stay updated on the latest crypto news and developments by subscribing to our newsletter today!