El Salvador Enhances Bitcoin Security Amid Quantum Threats; Monero Tackles Selfish Mining

Quantum Computer Threat: Monero Fights Back While El Salvador Eyes Bitcoin Split

El Salvador has taken significant steps to enhance the security of its Bitcoin reserves by redistributing them across multiple wallets. Each wallet now holds up to 500 Bitcoin, a move described as a step towards better security and long-term storage. This decision comes amid concerns regarding future advancements in quantum computing, which could potentially compromise the cryptography underlying Bitcoin.

"Quantum computers could, if sufficiently developed, use a method called Shor's algorithm to crack the cryptography behind Bitcoin."

Unused Bitcoin addresses are considered safer as their public keys remain hidden. However, once funds are spent, the public key becomes visible on the blockchain, potentially allowing a quantum computer to guess the private key and move the funds before the transaction is completed. By distributing funds across various wallets, El Salvador aims to mitigate the risk of any single address being attacked.

Additionally, the country has ceased the practice of reusing the same address, which previously left public keys exposed for extended periods. A public dashboard has been established to allow citizens to track the reserves without the need to reuse addresses, aligning with widely accepted Bitcoin management practices.

Key Takeaway: El Salvador's strategy focuses on securing its national Bitcoin reserves against potential quantum threats by redistributing funds and improving wallet management practices.

Monero Developers Tackle Selfish Mining

In a parallel development, researchers within the Monero community are investigating ways to limit selfish mining, a strategy where a pool controlling over 25% of the network's power can delay block releases for higher profits. Unlike a 51% attack, this method does not require full control of the network but can still disrupt it significantly.

Developer Tevador proposed a system called "Publish or Perish" (PoP), which involves a soft fork to make selfish mining less profitable by adjusting block weights and allowing uncle blocks. A subsequent hard fork with "Reward Splitting" would further reduce incentives for attackers by altering how rewards are distributed.

While some community members support PoP, others express skepticism, citing research that highlights its limitations compared to alternative methods. Additionally, proposals for adaptive systems that adjust miner decisions in real-time to counter selfish strategies have been discussed, although concerns about potential timestamp manipulation remain.

Key Takeaway: Monero's efforts to combat selfish mining reflect a proactive approach to maintaining network fairness and preventing disproportionate rewards for miners.

Focus on Long-Term Security Against Quantum Computers

Both cases illustrate how cryptocurrency entities are considering long-term risks. In El Salvador, the emphasis is on protecting a national reserve containing thousands of Bitcoin, while Monero aims to ensure a fair network and prevent miners from gaining excessive rewards. Advocates continue to stress the importance of self-custody, asserting that directly holding private keys remains the most reliable way for individuals to safeguard their funds.

Governments and developers are working on broader protective measures, but personal control over keys is still central to security. These initiatives represent a broader effort to prepare for potential advancements in quantum technology and new forms of network attacks. Although no quantum computer has yet demonstrated the ability to crack Bitcoin's cryptography, planning for such scenarios is deemed necessary.

Key Takeaway: The proactive measures taken by El Salvador and Monero highlight the importance of preparing for future risks associated with quantum computing and network vulnerabilities.

Sources:

• Quantencomputer-Bedrohung: Monero wehrt sich, während El Salvador die Bitcoin-Spaltung ins Auge fasst