Google quantum chip result revives debate over risk to older bitcoin wallets

New research from Google has renewed debate in the crypto industry over how soon quantum computers could threaten the cryptography that protects bitcoin wallets, CoinDesk reported on Friday.

In a paper published in the journal Science, Google researchers said its Willow chip produced about 40 times fewer errors when preparing so-called “magic states”, a step needed for large-scale quantum computing, using a technique called magic state cultivation. States that passed the chip’s checks reached about 99.99% fidelity, though only about 8% of attempts were kept, according to CoinDesk.

CoinDesk noted the result does not make an attack on bitcoin 40 times cheaper. In March, Google estimated that fewer than 500,000 physical qubits could break the cryptography used in bitcoin and ether wallets, under certain assumptions.

Investor Nic Carter told CoinDesk that AI was speeding up progress but there was no immediate threat. Alex Pruden of Project Eleven, a firm focused on quantum security, said the result does not necessarily bring the day of a working attack closer, but supports existing estimates.

CoinDesk said early, Satoshi-era coins are seen as the most exposed. On 7 October, 100.02 BTC that had been dormant since July 2010 was moved, CoinDesk reported, adding that the transfer is not proof of quantum-related fears.