The security of Bitcoin’s earliest transaction formats has once again sparked debate about the fate of Satoshi Nakamoto’s 1 million BTC in light of advancements in quantum computing, which pose potential threats to the cryptocurrency.
A Revisit to the Past: P2PK and P2PKH Transactions
Bitcoin’s early transaction format, pay-to-public-key (P2PK), exposed public keys on the blockchain. This vulnerability arises from the fact that unlike modern pay-to-public-key-hash (P2PKH) outputs, earlier P2PK transactions are susceptible to exploitation by quantum computers capable of deriving private keys from public keys.
Emir Sirer’s Insight: A Warning for Satoshi’s Coins
According to Emir Sirer, founder and CEO of Ava Labs, the earlier P2PK transactions could potentially be exploited by quantum computers. This raises questions about the security of Satoshi Nakamoto’s 1 million BTC, which resides in these vulnerable outputs.
The Debate Continues: Freezing Satoshi’s Holdings
Some proponents argue that freezing Satoshi’s holdings is necessary to prevent exploitation. However, others counter that such a move undermines Bitcoin’s principles of decentralization and immutability.
Related: US Bitcoin ETFs Now Hold More BTC Than Satoshi Nakamoto
Is the Coin Vulnerable?
Satoshi’s 1 million BTC resides in the earliest P2PK outputs, which no longer commonly used due to its vulnerability. The introduction of P2PKH has made it more complex for hackers to exploit public keys.
Are We There Yet?
The vulnerability of P2PK outputs to quantum threats is not yet an issue. However, as advancements are made in quantum computing and quantum attacks become a viable option, this could change in the future.
Source: egs9000
Freezing Satoshi’s 1 Million BTC
To freeze Satoshi’s holdings, developers would need to alter Bitcoin’s consensus rules to make specific unspent transaction outputs (UTXOs) unspendable. This process would require:
- Drafting a Bitcoin Improvement Proposal (BIP)
- Clearly identifying the vulnerable P2PK outputs with Satoshi
- Seeing it approved by the community
The Path Forward: Soft Fork or Hard Fork?
If approved, the freeze function could be carried out via a soft fork, which is an optional element for nodes but driven by consensus. Alternatively, a hard fork would completely overhaul the underlying code of the BTC blockchain.
The Implications of Freezing Satoshi’s Holdings
Freezing Satoshi’s holdings raises critical questions that challenge the fundamental ethos behind the creation of cryptocurrencies. Bitcoin was designed to be an immutable ledger where no entity can change the network’s history. However, freezing the coins via a fork would contradict this principle and open the door to future interventions.
Proponents for Exceptional Treatment
Some proponents argue that Satoshi’s coins are a unique case and could be considered an exception due to their public key exposure and the implications it could have on the broader crypto market.
Quantum Computing Advancements: Could They Prompt Satoshi to Reveal Themselves?
As quantum computing advancements continue, and the potential for a quantum attack on the 1 million BTC motherlode grows, this raises questions about whether such an event would prompt Satoshi to reveal themselves.