Avalanche CEO calls for freezing million BTC amid quantum computing concerns

Calling to consider freezing these coins, Emin Gün Sirer from Avalanche says that the first Bitcoin issued by Satoshi Nakamoto may become vulnerable to quantum computing.

Emin Gün Sirer, founder of Avalanche (AVAX), started a discussion by proposing to freeze 1 million Bitcoin (BTC), worth approximately $97 billion, in his post published on X on December 10. Believed to have been issued in the early days of Bitcoin, these coins are often linked to their fake creator, Satoshi Nakamoto.

But Sirer’s proposal has nothing to do with the possibility of Bitcoin’s creator reemerging. Instead, he expressed concern that quantum computing could threaten the security of these coins, which still use an older encryption standard.

>Hello world

Sirer’s idea emerged shortly after Google unveiled its new quantum computing chip called “Willow.” According to the tech giant, Willow can perform a standard benchmark calculation in less than five minutes that “would take one of today’s fastest supercomputers 10 septillion (i.e. 1025) years.”

Although Willow has not yet been able to crack Bitcoin’s encryption, this marks a significant step towards practical quantum computing.

Satoshi has a 1 million Bitcoin issue. @hosseeb I was just reminded that Satoshi’s first coins used the very old Payment to Public Key (P2PK) format; This format exposes the public key, the mother of all cryptography rewards, and gives the attacker time to grind. Not P2PK…

— egs9000🔺⚔️ (@el33th4xor) December 9, 2024

Sirer claims that quantum computing “will make it easier to perform certain operations, such as factoring numbers, but other operations, such as inverting one-way hash functions, will be equally difficult.” But there are still a lot of ifs and buts.

moral status

The problem is that Bitcoin’s security is still robust against these advances because it is based on hash algorithms and elliptic curve cryptography. However, the same cannot be said for Satoshi-era coins.

This is where Sirer points out the most important exception: the first Bitcoin coins, including those issued by Nakamoto, used the Public Key Payment (P2PK) format. Unlike newer formats, P2PK gives quantum attackers more room to work by revealing the public key.

Avalanche’s CEO says these coins provide “the mother of all cryptography rewards,” highlighting the risk this legacy format poses if quantum computers become more capable.

Sirer argues that the Bitcoin community should consider “freezing” coins stored in P2PK addresses or setting a “sunset date” for their availability. He suggested that such a move would protect the overall integrity of Bitcoin from a future in which quantum computers could crack P2PK encryption.

However, the proposal received both support and criticism. Advocates see this as a proactive step to reduce the risks posed by emerging technology. But critics see this as an attack on the principles of decentralization and ownership that underpin Bitcoin.

What is the problem with P2PK?

Most modern Bitcoin wallets use Payment Hash to Public Key, also known as P2PKH, or SegWit formats that only reveal a hashed version of the public key. The additional layer of security ensures that even if a quantum computer were available, the hash would need to be reversed first to obtain useful information; This is an extremely difficult nut to crack.

In contrast, P2PK addresses store the public key in plaintext, giving potential attackers a direct starting point for quantum attacks using algorithms like Shor’s; these algorithms can theoretically break elliptic curve cryptography with enough computational power.

Google Willow Quantum and Bitcoin Cryptography

Today, Google announced that Willow has reached 105 qubits with improved error rates. Should Bitcoiners be worried?

🚫 Short Answer: No.

🔒 Bitcoin relies on two types of encryption:

1️⃣ ECDSA 256: Vulnerable to “Shor’s algorithm”, but… pic.twitter.com/Baa8lwUVM6

— Ben Sigman (@bensig) December 9, 2024

Bitcoin entrepreneur Ben Sigman explained in an X post that despite recent quantum advances, computers like Willow are still far from the ability to launch such attacks. “It would take over 1,000,000 qubits to break Bitcoin’s ECDSA 256 encryption,” Sigman wrote, adding that Willow’s 105 qubits are “not even close.”

Critics oppose freezing bid

An Others raised doubts about how to identify and freeze these funds without sparking further controversy.

How to clearly define “Satoshi’s coin”? This is the big problem.

Setting a sunset date and freezing all funds in P2PK utxos is just like another “birthright citizen annulment”, this would be a very controversial issue!

— R8:be quantum safe!or be 0! We’re pushing Bitcoin to be! (@r8raq) December 10, 2024

How to clearly define “Satoshi’s coin”? that’s the big problem,” asked user “r8raq” and emphasized: “Sunset date and freezing all funds in P2PK utxos is like another “cancellation of birthright citizen”, this will be a very controversial issue!”

Others worry about the precedent it could set for future changes. Bitcoin’s “killer feature” is that it cannot be easily changed and can upset users who like to game its rules and resist censorship and interference.

While the risks posed by quantum computing are speculative for now, Sirer and others believe the crypto community should be prepared for the consequences. “Realistic attacks on cryptocurrencies are still a long way off,” Sirer wrote. “For now, let’s all watch how quantum computers develop over the next few decades.”