The Threat of Quantum Computing to Bitcoin Security: A 9-Minute Window to Theft

This series previously explored the basics of quantum computing. However, understanding how it works is not enough to comprehend its potential to steal bitcoin. To grasp this, one must delve into the security mechanisms of bitcoin and identify the vulnerabilities that quantum computers can exploit. This piece will examine bitcoin's encryption, the role of elliptic curve cryptography, and how a quantum algorithm can break it. Bitcoin's security relies on a one-way function, where a private key is used to generate a public key, but reversing this process is virtually impossible for classical computers. However, a quantum algorithm known as Shor's algorithm can efficiently solve this problem, potentially allowing an attacker to derive a private key from a public key. The recent paper by Google's Quantum AI division has reduced the estimated number of qubits required to run Shor's algorithm, making the threat more tangible. The article will discuss the implications of this research, including the 'nine-minute window' during which a quantum attacker could potentially steal bitcoin, and the alarming fact that approximately 6.9 million bitcoin are already vulnerable to such an attack.