Tether chief executive officer Paolo Ardoino predicts that quantum computing will eventually crack Bitcoin wallets classified as inactive and return digital assets to circulation.
At the same time, Mr. Ardoino separately noted that the implementation of the mentioned scenario is not an immediate prospect and will not become a fact of reality soon. As part of his forecast, which is not focused on the near future, he underlined that quantum computing will ensure that any Bitcoin lost in wallets, including Satoshi, will be hacked and returned to circulation. The corresponding statement is contained in the message that Paolo Ardoino posted on the social media platform X last weekend.
Mr. Ardoino drew attention to the fact that currently, quantum computing is still very far from any significant risk of Bitcoin cryptography being hacked.
The mentioned computing is a new technology that contains significant potential, but the corresponding prospects are still a theoretical possibility, and not what can be described as a practical tool offering consumers specific utility options within certain use cases. It is expected that quantum computing systems will be able to apply many features and solve complex problems. In this case, atomic-level phenomena that traditional computers cannot handle will be used.
Against the background of the consistent development of quantum computing, lost Bitcoin wallets are at increasing risk. In this case, a kind of specificity of the situation lies in the fact that there is no one to protect and move funds. At the same time, it is highly likely that active cryptocurrency wallets will use quantum-resistant protection as it becomes available.
Paolo Ardoino expects that all Bitcoin wallets owned by people who are alive and have access to appropriate digital storage locations for virtual assets will be moved into new quantum-resistant addresses.
Pseudonymous crypto trader Crypto Skull told its 140,500 followers on X that bringing back Satoshi Nakamoto’s old wallets could theoretically be the reason for a return to the stone age. In the relevant context, it is also worth noting that many experts hold the view that Satoshi should have their 1 million Bitcoins frozen to prevent exploitation.
In December, Bitcoin bull and billionaire Chamath Palihapitiya posted in X a publication that suggested that quantum computing would be a risk to cryptographic approaches of v1. The corresponding statement is consistent with the point of view of Paolo Ardoino. Chamath Palihapitiya noted that the time frame is very unclear, and it does not apply to the immediate time horizon. At the same time, it was underlined that BTC holders should assume that something like this will happen and plan, taking into account the relevant circumstances.
In July 2023, Quantum Grad published a report stating that Grover’s search algorithm, a high-speed algorithm for searching an unsorted database, is the theoretical standard for the most optimized way to search for a Bitcoin key. At the same time, in this context, it was separately noted that millions of qubits may be required to develop a working Grover algorithm capable of seamlessly digging up the private key to Bitcoin wallets.
It’s also worth mentioning that last year, Chinese researchers reported that they had achieved a significant breakthrough in the area of encryption. In this case, it means cracking algorithms that are commonly used in the banking environment and the cryptocurrency industry. A team led by Wang Chao from Shanghai University used a quantum computer to breach the mentioned encryption methods. The specified computer was developed by specialists from the Canadian company D-Wave Systems. The attack was carried out using a technique known as quantum annealing.
It is worth noting that the specified attack, made by a quantum computer, did not expose specific passcodes. At the same time, the researchers are convinced that future developments will be able to detect more vulnerabilities in existing encryption systems.
Ethereum co-founder Vitalik Buterin proposed his solution in response to concerns about the potential threat of quantum computing. He is a proponent of the view that blockchain networks can mitigate the risk by conducting a hard fork and requiring users to download new wallet software.
In 2017, a group of researchers, including Divesh Aggarwal and Gavin Brennen, published an article that warned that the elliptic curve signature scheme used by Bitcoin, according to the most optimistic estimates, could be completely broken by a quantum computer as early as 2027.
As we have reported earlier, Google Says About Prospects of Commercial Quantum Computing Apps.
