El Salvador redistributed Bitcoin reserves into 14 new addresses to protect against quantum computing.
“By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized,” El Salvador’s Bitcoin Office said In a post on Friday, X added that each bitcoin (BTCThe address can hold up to 500 BTC.
The Bitcoin Office explained that once funds are spent from a Bitcoin address, its public keys are revealed and vulnerable — making it a target for quantum computers to crack — should the technology evolve into a significant threat in the future.
More than 6 million Bitcoin — worth around $650 billion — could be at risk Quantum research companies will be able to break elliptic-curve cryptography keys if quantum computer power increases. Project Eleven It was April.
There have been on-chain transfers
El Salvador held 6,274 Bitcoins (worth $678m) at a single location, but data from the blockchain shows that these funds were moved to 14 different addresses last Friday.
For now, Quantum doesn’t cause concern.
Project Eleven pointed out that while industry analysts praised El Salvador’s decision, quantum computing was still quite a distance from the ability to hack Bitcoin. A Bitcoin private key contains 256 bits, but no quantum computer using Shor’s algorithms has cracked a key smaller than 3 bits yet.
Michael Saylor is the author of Strategy’s Bitcoin Playbook. He said that quantum computing poses a threat to Bitcoin is mere hype The protocol’s developers said in June that they would make fixes if this issue became a major problem.
“The answer is: Bitcoin network hardware upgrade, Bitcoin network software upgrade, just like [how] Microsoft, Google, the US government upgrade.”
El Salvador continues to be entangled with IMF drama
El Salvador’s Bitcoin purchases have been brought into question following a report by the International Monetary Fund in July that claimed El Salvador had not bought any bitcoins. new Bitcoin purchases Since February.
Related: El Salvador’s Bukele reacts as $1B Bitcoin holdings bet increases on Kalshi
The Bitcoin Office in the country didn’t respond directly to those claims but continued posting about their Bitcoin purchases.
El Salvador secured a $1.4 billion funding deal from the IMF in December 2024 in exchange for scaling back its Bitcoin initiatives, among other conditions — though the terms appear to be under dispute between the two parties.
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Source: cointelegraph.com
