Google's launch of the Willow quantum chip has raised concerns: Could this technology break Bitcoin's security system, or even help Google mine all remaining Bitcoin? To answer, we need to understand the relationship between quantum technology and how Bitcoin operates.

Bitcoin and Proof-of-Work: Why Quantum is a Concern?

Bitcoin uses a Proof-of-Work (PoW) mechanism, requiring computers to solve complex cryptographic puzzles to verify transactions and create new blocks. Currently, traditional computers take a lot of time and energy to do this, but a quantum supercomputer could significantly reduce this time.

A simple example:

• Imagine you participate in a puzzle-solving competition, where each person needs at least 10 minutes to solve a question.

• Suddenly, a contestant with a quantum supercomputer, capable of solving the puzzle in 10 seconds, appears. This person would have a significant advantage in the competition.

• Similarly, a quantum supercomputer could 'solve' cryptographic problems faster, giving an advantage for Bitcoin mining.

However, can this actually happen in practice? Ben Sigman, a researcher in Bitcoin cryptography, believes that this prospect is still very far off.

4 Barriers to Quantum Threat

1. Current quantum technology is not strong enough

Bitcoin relies on two layers of encryption:

1. ECDSA 256 (Elliptic Curve Digital Signature Algorithm):

• This encryption is vulnerable to Shor's Algorithm. But breaking ECDSA 256 requires more than 1 million qubits.

• Google's Willow chip currently has only 105 qubits, meaning it is still far from the necessary level.

2. SHA-256:

• Much harder to break because Grover's algorithm only reduces the complexity from 2^{256} to 2^{128}. This still requires millions of physical qubits to pose a real threat.

2. Self-adjusting difficulty mechanism of $BTC

The Bitcoin network is designed to create a new block every 10 minutes, regardless of how much computational power is involved. If Google or any organization tries to use a quantum computer to gain an edge, the network will automatically increase the difficulty of the problems, significantly reducing their computational advantage.

3. Public key is not revealed

In Bitcoin transactions, the public key is not directly disclosed. Instead, it is encrypted through a double hashing function:

• This helps the funds that are 'at rest' in the wallet to have high quantum resistance.

• Hackers cannot use quantum computers to guess private keys without knowing the original public key.

4. Development of quantum-resistant algorithms

• Modern blockchains like Avalanche are integrating quantum-resistant solutions.

• Even the Bitcoin network, with its high conservatism, can upgrade security algorithms in the future.

A Weak Point: Satoshi Nakamoto's Bitcoin

Emin Gün Sirer, founder of Avalanche $AVAX , argues that a weakness in the Bitcoin network is old addresses. For example:

• Satoshi Nakamoto's wallet, containing over 1 million BTC, still uses an old format, exposing the public key. If quantum computers develop strong enough, these Bitcoins could be mined.

The solution?

• Some researchers suggest permanently freezing this BTC. However, this goes against the spirit of decentralization and freedom within the Bitcoin network.

Conclusion: Does Bitcoin Really Face Quantum Threats?

Although Google and other tech companies are making significant strides in the quantum field, the prospect of them breaking Bitcoin's security or mining all remaining BTC is very unlikely at this time. Current quantum technology is still far from the level needed to actually pose a threat.

However, the emergence of the Willow chip and developments in quantum technology are a wake-up call. It reminds the blockchain industry to continuously improve security and anticipate future challenges. Bitcoin and other blockchains will need to be ready to adapt to protect the ecosystem from potential threats.