Quantum computing firm Project Eleven has launched a challenge to test Bitcoin’s security. They’re offering 1 BTC, worth around $84,000, to anyone who can break Bitcoin’s cryptography using a quantum computer within a year. This challenge, called the “Q-Day Prize,” aims to assess the real-world threat quantum computing poses to Bitcoin’s security. Bitcoin uses the Elliptic Curve Digital Signature Algorithm (ECDSA) to secure transactions. However, a powerful enough quantum computer running Shor’s algorithm could potentially derive private keys from public ones, putting funds at risk. Project Eleven estimates over 6,200 BTC, valued at nearly $500 billion, could be vulnerable if such an attack were to happen.
The challenge involves cracking an elliptic curve cryptography (ECC) key using Shor’s algorithm on a quantum computer. Shor’s algorithm, developed in the 1990s, can factor large numbers much faster than classical methods, potentially breaking various cryptographic systems. However, executing it effectively requires a stable quantum computer with many qubits. So far, no machine has achieved this.
The Q-Day Prize
Tech giants like Alibaba, Amazon, Google, IBM, and Microsoft are already researching quantum computing. In February, Microsoft announced a breakthrough with its Majorana 1 quantum chip, which uses eight topological qubits. These qubits could be more stable and potentially useful for breaking current cryptographic models. However, experts say breaking Bitcoin’s SHA-256 algorithm would require millions of stable qubits, which is still largely theoretical.
The Q-Day Prize isn’t just about rewarding the winner; it’s about measuring the current state of quantum computing’s threat to cryptocurrencies. By doing so, it aims to push the industry toward quantum-resistant cryptography. This challenge could also prompt Bitcoin developers to adopt post-quantum cryptography alternatives more urgently. Recently, Bitcoin developer AgustÃn Cruz proposed preparing Bitcoin for the future by migrating all BTC to wallets compatible with post-quantum cryptography schemes.
Project Eleven’s Goal
Project Eleven’s CEO, Alex Pruden, says the Q-Day Prize is designed to turn a theoretical threat into a tangible reality. The challenge will provide concrete data on the current capabilities of quantum computing and alert the industry to the need for a transition. The initiative follows a proposal to migrate Bitcoin to post-quantum cryptography, highlighting the growing concern about the potential risks of quantum computing to cryptocurrency security.
- The Q-Day Prize offers 1 BTC to anyone who can break Bitcoin’s cryptography using a quantum computer.
- The challenge aims to assess the real-world threat quantum computing poses to Bitcoin’s security.
- Bitcoin’s ECDSA algorithm secures transactions, but a powerful quantum computer could potentially derive private keys.
- Over 6,200 BTC could be vulnerable to such an attack.
- Tech giants are already researching quantum computing, with some making significant breakthroughs.