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Max Keiser

RT @shanaka86: #ElSalvador just executed the first sovereign #quantum defense #protocol for Bitcoin.

By splitting reserves into diversified addresses capped at 500 BTC, they reduce exposure to Shor’s algorithm and future quantum key attacks. This is not cosmetic ... this is cryptographic statecraft. A nation is hardening money against physics itself. While central banks pray their fiat survives inflation, Bukele is preparing reserves for the post-quantum era. Bitcoin has now crossed the line from hedge to sovereign infrastructure. History will remember this pivot.
Max Keiser

RT bitcoinofficesv: #ElSalvador is moving the funds from a single Bitcoin address into multiple new, unused addresses as part of a strategic initiative to enhance the security and long-term custody of the National Strategic Bitcoin Reserve. This action aligns with best practices in Bitcoin management and prepares for potential developments in quantum computing.

Quantum computers have the theoretical capability to break public-private key cryptography using Shor’s algorithm. This cryptography underpins not only Bitcoin but also many daily systems like banking, email, and communications. When a Bitcoin transaction is signed and broadcast, the public key becomes visible on the blockchain, potentially exposing the address to quantum attacks that could discover private keys and redirect funds before the transaction confirms.

The reserve is being redistributed into multiple addresses, each holding up to 500 BTC. Limiting funds in each address reduces exposure to quantum threats because an unused Bitcoin address with hashed public keys remains protected. Once funds are spent from an address, its public keys are revealed and vulnerable. By splitting funds into smaller amounts, the impact of a potential quantum attack is minimized.

Previously, a single address was reused for transparency, exposing public keys continuously and theoretically giving a quantum attacker unlimited time to discover private keys. Now, with a public dashboard managed by The Bitcoin Office capable of monitoring multiple addresses, the reserve can maintain transparency without address reuse, enhancing security.

This approach combines robust quantum risk mitigation through address diversification and limited exposure per address with a commitment to transparency by publicly cataloging all reserve addresses. This strategy strengthens the integrity and future-proofing of El Salvador’s National Strategic Bitcoin Reserve against evolving technological threats.

More details and ongoing updates are available at bitcoin.gob.sv.