Funding for Project Eleven
In a significant move towards strengthening the security of Bitcoin and other cryptocurrencies against emerging quantum computing threats, Project Eleven has successfully secured $6 million in funding. This financial injection comes from a diverse group of investors, including Variant Fund, prominent in the Web3 sphere, and Quantonation, which marks their initial foray into the cryptocurrency industry. This announcement was detailed in a press release to Cointelegraph on a Thursday.
Objectives and Innovations
Led by CEO Alex Pruden, Project Eleven aims to develop essential tools and frameworks that will help ensure the robustness of digital assets in a world potentially dominated by quantum advances. According to data from Eleven Labs and YCharts referenced by the company, there are over 10 million Bitcoin addresses with a non-zero balance and a publicly exposed key, accumulating a substantial 6.26 million BTC, which is approximately valued at $648 billion, putting these assets at risk of quantum computing attacks.
To kick off their efforts, Project Eleven is launching a cryptographic registry named Yellowpages. This innovative solution will enable users to establish a quantum-resistant proof that securely links their current Bitcoin addresses to newly created, protected counterparts without relying on on-chain transactions. Pruden emphasized that Yellowpages would serve as a protective measure should quantum computing technology come to compromise existing Bitcoin keys. He mentioned that the registry underwent an audit by security firm Cure 53, with results forthcoming.
Collaboration with Bitcoin Core Developers
Discussions are underway between Project Eleven and Bitcoin Core developers regarding future enhancements to the network as the cryptocurrency community grapples with the implications of quantum computing. Notably, Adam Back, who has been mentioned in Satoshi Nakamoto’s Bitcoin white paper, previously highlighted that the pressures from quantum technology could potentially lead to the re-emergence of Bitcoin’s enigmatic creator.
The Quantum Threat Debate
The debate surrounding the quantum threat to Bitcoin remains contentious; skeptics argue it is a largely theoretical concern. However, the gravity of potential risks is acknowledged by various prominent institutions, like the U.S. National Security Agency (NSA), which aims for quantum-resistant National Security Systems by 2035, with mandatory encryption updates required by 2027. Similarly, the U.S. National Institute of Standards and Technology is working towards broad adoption of post-quantum cryptography in the same timeframe.
In a landscape where opinions on quantum computing’s capability vary widely, Pruden stated,
“It’s not a question of whether or not it’s theoretical; it’s a matter of when it becomes practical.”
A 2020 survey conducted by the Rand Corporation estimated that a quantum computer capable of breaking current encryption methods could emerge as soon as 2033, though timelines could vary considerably.
Current State of Quantum Computing
Despite the ongoing advances in quantum computing, classical computers still dominate. Pruden noted that while quantum machines can factor small ECDSA public keys, classical methods have achieved significant milestones, including the factoring of 829-bit RSA keys on supercomputers in comparatively shorter timescales. As the technology landscape evolves, the conversation continues about the relevance of quantum technology and its implications for the future of digital currency security.
