- El Salvador has created a new system to help protect its country’s Bitcoin reserve.
- Due to the new invention of quantum computing, BTC wallets stand a chance of being hacked and compromised through just the public wallet address.
El Salvador has continued to lead in its position as one of the top countries that has embraced the adoption of cryptocurrency. The company, which was the first to adopt BTC as a legal tender, has a few hours ago to announced the launch of a National Strategic Bitcoin Reserve.
Basically, the government has plans to transfer and spread the country’s Bitcoin to new Bitcoin addresses. The shift in strategy is aimed at strengthening the security of the assets and reducing their exposure to cyber hazards.
Why El Salvador Decided to Spread Its Bitcoin Holding
So far, El-salvador committed to its new strategy of buying Bitcoin every day and adding it to the country’s reserve. And the country had successfully put all its Bitcoin holdings into one wallet before the introduction of this new “division method.”
So far, one of the major new inventions that has posed a threat to the Bitcoin security system is quantum computing. Normally, every BTC transaction relies on a set of public-private key cryptography. And under normal circumstances, these private keys cannot be easily accessed and are secure because they cannot be practically derived from public keys using today’s computing power.
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However, with the new innovation of quantum computers, equipped with other algorithms like Shor’s algorithm, private keys can now be calculated from public ones. Once a BTC transaction is broadcast, the public key is revealed on the blockchain. This new innovation opens a small window of vulnerability that a quantum attacker could use to seize funds even before a transaction is confirmed.
This acts as one of the major reasons for the decision to spread the funds. According to the post shared on the country’s official BTC office, none of its different addresses would hold more than 500 BTC. Through this means, the country minimizes the potential impact of a single point of failure or hack.
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