Ava Labs founder and CEO Emin Gün Sirer recently suggested freezing Satoshi Nakamoto's estimated 1.1 million BTC. He raised this idea due to potential vulnerabilities in the early wallet cryptography.

As quantum computing advances, it could exploit outdated systems like Pay-to-Public-Key (P2PK), which were used in Nakamoto's original wallets. Sirer’s proposal comes at a time when many are discussing how quantum computing might impact cryptocurrency security.

While the technology is groundbreaking, experts believe the current threat to cryptocurrencies is minimal. This is largely due to strong cryptographic designs and evolving security measures.

Sirer explained, “Quantum computing will simplify some tasks, like factoring numbers, but others, like breaking one-way hash functions, will remain tough. Plus, a quantum computer has a limited time to attack, making it challenging for attackers.”

Quantum computers excel at specific tasks, which can threaten traditional encryption methods. However, they're not as effective against one-way hash functions, which are essential to many cryptocurrency protocols. This is why Sirer is calling for the freezing of Satoshi's Bitcoin. The coins he mined used the old P2PK format.

He stated, “There’s the issue of Satoshi’s 1 million Bitcoin. Satoshi’s early coins used the very old P2PK format, which reveals the public key and gives an attacker time to exploit it. Modern wallets don’t use P2PK, but it was common in Bitcoin’s early days. As quantum computing becomes a greater threat, the Bitcoin community might want to consider freezing Satoshi’s coins or even setting a date to freeze all coins at P2PK UTXOs.”

The P2PK format, used by Satoshi to mine around 1 million BTC, directly exposes the public key. Besides Sirer, Ethereum co-founder Vitalik Buterin has also commented on the implications of quantum computing.

Sirer’s suggestion has sparked a lot of debate. Critics argue that it undermines the core principle of ownership in cryptocurrency. One user remarked, “Sunsetting Satoshi’s coins fundamentally challenges crypto’s ownership logic.”

Another user suggested that freezing the coins might lead to Nakamoto’s reemergence, potentially shaking up the crypto world. This discussion is fueled by Google’s recent announcement of their quantum chip, Willow.

Willow is a cutting-edge quantum computing chip that has ignited conversations across various sectors, especially in cryptocurrency. It uses 105 qubits to solve problems in five minutes that classical computers would take over 10 septillion years to complete.

Google and Alphabet CEO Sundar Pichai said, “Willow can reduce errors exponentially as we scale up. In tests, it solved a standard computation in under five minutes, a task that would take a leading supercomputer over 10^25 years.”

Bitcoin relies on cryptographic algorithms like SHA-256 for mining. These are secure against traditional computing but could be vulnerable to the immense power of a quantum computer. In theory, quantum computers could crack private keys, putting wallets and transactions at risk.

However, Willow isn’t there yet. Current quantum computers, including Willow, face challenges like error rates and scalability. To break Bitcoin’s encryption, a quantum computer would need millions of error-corrected logical qubits, far exceeding Willow’s 105 physical qubits.

Chris Osborn, a quantum computing expert, explained that Willow showcases advancements in error correction. It turns noisy physical qubits into more reliable logical qubits. But, breaking encryption still requires 5,000 logical qubits, equivalent to millions of physical qubits. Willow’s 105 physical qubits are just the start.

Osborn stated, “I love quantum computing and have dedicated over a decade to this field. But all this worry in crypto about breaking encryption is just noise.”

While immediate threats to Bitcoin are low, the crypto industry isn’t complacent. Vitalik Buterin has called for the development of quantum-resistant algorithms, highlighting the need for proactive measures.