Quantum Threat: El Salvador to Split Bitcoin Holdings For Safety

Quantum Threat: El Salvador to Split Bitcoin Holdings For Safety
Quantum Threat: El Salvador to Split Bitcoin Holdings For Safety

Main notes

  • Bitcoin Office in El Salvador has announced the redistribution of BTC Holdings.
  • This comes as fears of quantum computing that takes the theater in this industry.
  • The quantum computing threats may not be complete in the foreseeable future.

El Salvador decided to redistribute Bitcoin (BTC) with multiple addresses. To this end, it announced that approximately $ 678 million of BTC’s possessions will go to different portfolios. The Central American State made this decision amid increasing concerns about the potential threat posed by the quantum computing of digital assets, especially bitcoin.

El Salvador tries to outperform quantum computing

It is worth noting that El Salvador owns 6,274 BTC in its reserves, and this great hood is of $ 678 million based on the current market price. At the time of writing this report, One unit of bitcoin It was worth about 108,655.94 dollars, and the value is 1.14 % decreased over the past 24 hours.


According to the participation of X from the country’s Bitcoin office, the Nayib Bukele -led country redistributed this reserve of 6274 BTC to 14 wallets, with each of 500 BTC. This is a major transformation from the previous scenario, as El Salvador held this entire arrest in one address. The presence of Bitcoin in one place and not one of the best encryption wallets is a threat itself.

As for the context, the Bitcoin coin in the country was prepared for the risks of advanced encryption, especially this season that the issue of quantum computing is heading. Nation officials believe a firm belief that diversification of the governor has the ability to maintain transparency. Ultimately, this is a step that can reduce the potential effect of quantitative violation.

“Reducing money in each address reduces exposure to quantum threats because Bitcoin address is not used with segmentation keys is still protected,” Al Salvador officials said. “Once the money is spent from an address, its general keys are detected and weak. By dividing the money into smaller amounts, the effect of a possible quantitative attack is reduced.”

Quantum computing and their impact on encrypted currencies

The quantum computing theme has become a hot direction in the digital asset sector. These are very powerful computers capable of dealing with some of the most complex challenges in the world today. The most important institutions such as NASA and some of the largest companies such as Exxonmobil, Alphabet and IBM are currently using such computers.

Since they carry several benefits, it should be noted that they may be harmful to encrypted currencies. A few months ago, Craig Gidni, a Google’s artificial intelligence researcher, said that Bitcoin encryption faces increasing risks due to rapid developments in quantum computing.

Moreover, he made it clear that the RSA encryption break, a general key to encryption and decomposition of data, is now easier. Now, 20 times the quantum resources require less than previously estimated. However, the BTC does not use RSA coding but the elliptical curve encoding (ECC).

This ECC is also vulnerable to the Shor algorithm, which is able to develop large factors and solve the logarithmic problems. These features are essential in the encryption of the public key. At the same time, analysts and senior players in the encryption believe that quantum computing, such as Google Willow, is still negatively far from digital assets.

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Slip: Coinspeaker is committed to providing unbiased and transparent reports. This article aims to provide accurate and timely information, but it should not be considered financial or investment advice. Since market conditions can change quickly, we encourage you to check your information and consult with a professional before making any decisions based on this content.

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Benjamin Jodfrey is a blockchain lover and journalist who enjoys writing about the real life applications of Blockchain technology and innovations to pay public acceptance and complementarity all over the world for emerging technology. His desire to educate people about encrypted currencies inspire his contributions to the media and famous sites in Blockchain.

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