- Project Eleven offers 1 BTC for breaking Bitcoin’s cryptography with Shor’s algorithm.
- Quantum computing could expose 6.2 million BTC to potential risks.
- Bitcoin’s community is exploring solutions like QRAMP and CGBS to address quantum threats.
Project Eleven, a quantum computing research firm, has established the Q-Day Prize on a X post, offering 1 Bitcoin (BTC) to the first unit that can break BTC’s elliptic curve cryptographic (ECC) key using Shor’s algorithm on a quantum computer.
This international contest aims to reveal the danger that quantum computing poses to BTC’s cryptographic security.
Quantum Computing Threat to Bitcoin’s Security
BTC executes transaction signatures via the elliptic curve digital signature algorithm (ECDSA). Quantum computers that employ Shor’s algorithm demonstrate the theoretical possibility of breaking such encryption. Quantum computers utilize their fast number factorization ability to extract private keys from public keys. A critical security vulnerability arises because this issue puts Bitcoin wallets and all blockchain networks at risk of breach.
Project Eleven’s challenge seeks to test the vulnerability of Bitcoin’s cryptography. The firm is offering the Q-Day Prize to any team that can break an ECC key using quantum computing techniques. With over 6.2 million BTC, worth nearly $500 billion, at risk, this challenge has raised concerns within the cryptocurrency community.
Shor’s Algorithm and the Quantum Computing Race
This advanced algorithm functions as a quantum computing discovery that factors large numbers into their fundamental prime components. A quantum computer gains the power to break RSA and elliptic-curve cryptography encryption through this algorithm, which BTC relies on. The experts predict that quantum computers would require just millions of stable qubits to successfully decrypt Bitcoin’s SHA-256 encryption that maintains transaction security and mining operations.
The contest is convenient because the action of quantum computing is progressing rapidly at the moment. Many prominent organizations are involved in the research, development, and commissioning of new quantum technology, including IBM, Google, and Amazon. Microsoft has made a significant development with its Majorana 1 quantum chip with topological qubits. These technologies are still in their infancy, but they signify that quantum computing may soon advance to a level wherein it can compromise Bitcoin’s cryptographic fundamentals.
Bitcoin’s Response to Quantum Threats
BTC’s community has already begun exploring probable solutions to mitigate the risks posed by quantum computing. One such recommendation is the Quantum-Resistant Address Migration Protocol (QRAMP). This Bitcoin Improvement Proposal (BIP) anoints for a migration to post-quantum cryptography, but it would require a hard fork of the network, which could be challenging to achieve.
Additionally, a quantum startup named BTQ has proposed an alternative to Bitcoin’s Proof of Work called Coarse-Grained Boson Sampling (CGBS). This method uses quantum computing to generate unique photon patterns, which could replace traditional mining puzzles. However, like QRAMP, this solution would also require a hard fork, and its feasibility is still uncertain.
The Q-Day Prize is not only a competition but also a wake-up call. It especially points out the need for Bitcoin and other blockchain networks to start preparing for the potential risks that quantum computing brings. However, as the science of QC advances, the time frame for such threats becoming real is still unknown, but it is necessary that Bitcoin constantly defend itself.
