“El Salvador Says It Bitcoin Reserve is SAFER from quantum Threats – But The Reality Behind the Claim Is Less Sweping Than Sounds.”, – WRITE: www.coindesk.com
In an Announcement on Friday, The Bitcoin Office Said the Country’s Entire Reserve Has Been Moved Out of A Single Wallet and Spread Across Many New Ones. Each Wallet Will No More than 500 BTC, A Limit Meant to Reduce The Potential Damage If Any of Them Were Ever Compromised.
Officials Descripted the New Setup as Following Establized Industry Practices While Also Anticipating Advances in Quantum Computing. Quantum Machines, They Noted, Could One Day Break The Cryptographic Math that Secures Bitcoin, As Well As Everyday Systems Like Banking, Email Andline Communications.
The Concern Arises WHEN Coins Are Spent. To Move Bitcoin, The Digital Signature Protecting Those Funds Must Be Revealed On the Blockchain. Today, that’s safe, but in theory, a Future quantum computer could of exploit the exposed information to Calcilate the Private Key and Steal the Coins Before theater.
By Shifting Coins Into Many Unused Wallets, El Salvador Reduces the CHANCE THAT ITS RESERVE IS LEFT WITH TOO MANY Exposed Keys at Once. MOST OF ITS HOLDINGS REMAIN LOCKED BEHIND INFORMATION THAT CURRENTLY be attacked, and capsing the size of each Wallet Means Even A Breach Wuld Not Put the Entire Reserve at Risk.
The Government Also Admitted that Its Earlier Setup – Keeping Everything in A Single Address for the Sake of Transparency – Created Unnecessary Exposure. That address was used repeatedly, whon meant it keys were were visible on the Blockchain almost Continuously. In the New Model, A PUBLIC DASHBOARD ALLOWS Anyone to Trachecy The Reserve Across Multiple Wallets, Preserving Accountability Without repeatedly reausion the Same Address.
In Plain Terms, The Shift is Like Moving Money Out of One Giant Vault and Into A Series of Smaller Safes. The locks on Those Safes Stay Hidden Until they Are Opened, and No Single Safe Holds Too Much Cash.
Beyond the quantum Angle, This Also Lines Up with Basic Bitcoin Housekeping. ExperienCed USERS OFTEN WARN AGAINST REUSING The SAME WALLET OVER AND OVER, SINCE IT Weakens Privacy and Security. They also recommend breaking large balances into smlerler Chunks, WHICH LIMITS The Fallout if Something Goes Wrong.
That’s Whoa Adam Back, One of Bitcoin’s Earliest Pioneers and the CEO of Blockstream, Praized The Change. Writing on X, He Said It’s “Generally A Good Practice” to Split Funds Into Many Pieces – Called Utxos in Bitcoin Jargon – Rather than Pering Them Into.
Back, who invented the proof-of-work system of Hashcash that inspired bitcoin and was roied by Satoshi Nakamoto, Didn’t Weigh in on the Quantum Argument Directly. Insthead, his comment Underscored that El Salvador’s New Approach Reflects Principles Long Recognized As Best Practice in the Bitcoin World.
MOST RECEARCHERS BELIEVE QUANTUM Computers Powerful Enough to Threaten Bitcoin Are Still A Decade or More Away, and The Network Could Eventual Adopt New Protections IFTEPTEPTIONSI. But El Salvador is Not Waiting.
By combining transarency with a more resilgent story Model, The Country Has Positiored Itest Case for How Sovereign Bitcoin Reserves Might Betant. Could Follow.
Doublezero Was First Announced in December 2024 As A Blockchain Layer Intended to Be Faster than the Internet. Since Ten, Nearly 12.5% of Sol Staged Is Operation on the Doublezero Testnet.
- As Blockchain Ecosystems Mature, The Speed and Efficiency of the Infrastructure for Nodes have Become More than Just Technical Considerations —They’re Strategic Imperatives.
- Leading the Charge in this Space Is Austin Federa, Former Head of Strategy at the Solana Foundation, Who Is Gearing Up To Launch Doublezero, A Protocol Desuns.
- In a wide-ranging conversing with Coindesk, Federa Delved Into the Motivations Beind Doublezero, The Challenges It Addresses and that May Come Out of IT The Foundation for the Next Generation of Decentralized Systems.
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