➡ Mark Moss talks about how google’s new Willow Quantum Chip, a powerful computing breakthrough, has sparked debates about its potential to break Bitcoin’s encryption. This quantum computer can process transactions at an unprecedented speed, cracking codes in minutes that would take regular computers billions of years. However, Bitcoin’s decentralized nature and unique encryption methods may make it less vulnerable. The shift from centralized to decentralized systems is a significant technological change that could impact various sectors.

➡ Blockchain is like a digital locker system where everyone can see the locker (public address), but only the owner can open it (private key). This system allows for secure transactions, like moving Bitcoin from one wallet to another. Quantum computing, which could potentially break this encryption, is a concern, but it’s estimated to be a threat to Bitcoin in about 10 to 20 years. However, Bitcoin was designed to evolve and adapt, and developers are already working on solutions to this potential issue.

➡ Cybersecurity is facing a major challenge due to the rise of quantum computing, which can crack traditional security measures. This has led to a surge in the quantum computing industry, with predictions of a $2 trillion investment in the next few years. Companies like Scope Technologies are developing quantum-resistant encryption keys to enhance security. Despite the risks, this development also presents a significant opportunity for growth in the cybersecurity sector.

A new player has entered the game and it’s called the Willow Quantum Chip. It’s Google’s latest breakthrough in computing power. Now, the internet is ablaze with one question. Could this quantum machine destroy Bitcoin? And why stop there? What about higher value targets? Central banks, Department of Defense, corporations, or more? Well, the headlines are terrifying. The debates online are pretty heated and the stakes, well, of course, they’re higher than ever. But what if I told you the truth is actually far more fascinating? In this video, I’m going to break down what Google Willow chip really is.

Let’s talk about the potential risks that opposes to Bitcoin. If you’re holding Bitcoin, should you be worried? And we’re going to look at other infrastructure that’s at risk as well. Now, real quick, my name is Mark Moss. I’ve been making Bitcoin content for over eight years. I’m a Bitcoin focused venture capital investor. And in this video, I’m going to share some of the same insights that I’ve learned and we use every single day. So let’s go. All right, now I’ve been making content specifically for Bitcoin for now over eight years. And if I had just $1 for every single time somebody told me, yeah, but quantum computing is going to destroy the whole thing.

Well, I probably have enough to buy one whole Bitcoin. I’ve been asked that question a lot. And I would typically answer something like, yeah, well, what about aliens? They could come destroy the world tomorrow, too. If you want to deal with hypotheticals, because there is no quantum computing, right? That’s my typical answer. But the answer’s changed because now quantum computing is here. So now rather than having to answer some hypothetical in the future, maybe threat like an asteroid destroying the earth, now we have a real thing. So let’s talk about that for a minute, because now let me answer this question for once and all.

And then when people ask me, I’ll send them the video. Okay, so introducing Google’s new Willow chip. Like I said, the first real quantum computing that we’ve had, the first real threat we have to break encryption, including potentially Bitcoin’s encryption. Okay, so first of all, they’ve been working on this on a long time. Google has basically cracked a 30 year challenge. They’ve been working on this for a really long time. Now, what quantum computing does is it allows computers to be way more powerful and allows them to process way more transaction. So if a computer was trying to guess a password, for example, like your typical 12 character password that might have one capital letter and one character, it could take a regular computer, I don’t know, something like 35,000 years.

But a quantum computer, because it could try so much faster, could break it in minutes, potentially. Okay, so they’ve been working on this for over 30 years. Now, what they’ve been able to do, the breakthrough that they’ve had is as this quantum computer is processing transactions, it’s able to reduce the errors. And because of that, they’re able to scale these qubits. Okay, so this is sort of how they measure the speed and the processing power of these quantum computers. So this quantum computer is so fast, it could crack a code in about five minutes that would take a regular computer 10 septillion years.

I don’t even know what that is. 10 septillion years, which is 10 to the 25th power, or basically looks like this. That many zeros haven’t added them up. It’s a really long time, 10 septillion years. So this is a really fast innovation that Google’s been able to do. Okay, so the question is then, what will they do with this new power? And is it a threat to Bitcoin? And is it a threat to encryption overall? Let’s break that down. So the first thing is, we have to understand that Bitcoin represents an entire shift in the way technology is built.

You hear me talk about this regularly, if you watch my videos, talking about the decentralized revolution. So what we have is that basically all of our databases, Experian, Amazon, your bank, the central bank, etc, they’re all centralized databases. All the data sits in one central database, and it’s controlled, it’s protected by the cybersecurity team versus Bitcoin has now introduced a decentralized database. And so really what we’re witnessing is centralization versus decentralization. Now, besides the main aspect of one database versus many databases, we have different types of encryption. Well, let me just break down the centralized versus decentralized.

So this is what’s going on. The internet actually started as a very decentralized ecosystem. As a matter of fact, when I launched my first internet business back in 1999, I had to have a server in my office with my own servers, with raid hot hot in a swappable hard drives, etc. Because there was no Amazon cloud. There was nothing like that. So I had to run my own server. So at that time, the internet was very decentralized. Everybody ran their own database, right? And uploaded directly to the cloud. But since then, what’s happened is the internet got very centralized.

So now you log in with your Facebook ID or Google ID, everything sits on the Amazon cloud, everything runs through our Gmail, our Google, right? So everything got centralized. The problem with centralized systems is we see how they’re prone to fraud, manipulation, also break ins. We’ll talk about that in a minute. Now, what we can see is where we’re at is centralized systems are now starting to go down. For many reasons, I’m going to break down for you. And we’re starting to see the rise now of decentralized systems. And so it’s going to be a massive paradigm shift that will happen over the next 25, 30 years.

I talk about this quite often. But to break this down again, centralized versus decentralized, again, so you have one database, your bank, Amazon, Experian, etc. And think of it like this, like if you had $1 billion in one bank, that’s a really big target. There’s a lot of people that potentially break into that bank, try to crack the code of that bank to get that billion dollars. But if I had a billion banks with $1 each, what’s the point? It’s way too much work for me to go to each bank one by one and one and break into them to get $1 at a time, a billion times I would do it.

And that’s the difference of centralized versus decentralized systems. Now, in Bitcoin, specifically, let’s dig into this, there’s different types of encryption. So when you think of Experian, and I’m going to talk about all some of the biggest breaks. And as a matter of fact, the biggest database, most secure database in the world was hacked. I’m going to tell you what that was in a second. We have to understand that all of those centralized systems run a different type of encryption than Bitcoin. So first, we’ll talk about Bitcoin, then we’ll get to the rest. So a couple ways to think about this encryption.

So database encryption, your typical database uses symmetric encryption algorithms like AES, for example, advanced encryption standards. Now, Bitcoin uses different encryptions. As a matter of fact, it uses two different types of encryption. And this is primarily uses asymmetric cryptography. All right, so there’s elliptical curve. And there’s SHA 256. Let me break those down for you just so you can understand. I’m not going to go super deep into the weeds here. I want to give you the base information so you can understand this and at least sound intelligent if you want to have a conversation.

And if you want, go research this. If you’re a computer nerd, you can go research this a little bit more. Okay, so the first thing is, there’s different parts of the Bitcoin network itself. There’s Bitcoin, the network, and there’s Bitcoin, the asset that moves on the network. And the Bitcoin network itself uses mining computers to process transactions. This is hashing, right? And then there’s the transactions themselves. More of the nodes, we’ll talk about that in a second. So the first is we have Bitcoin protocol, and it uses the SHA 256. You might have heard of this before.

This is for all hashing operations. So for the Bitcoin mining, the processing computers, to process the transactions, they mark them as a hash that’s now saved in time in this block for everyone to see. All right, this is what we call proof of work, a proof of work mechanism. In order for a miner to submit a block to the network, the hash of the block must be below a certain threshold. So it’s basically trying to figure out this code. And if it gets that, then it will put that hash into the blockchain. All right, so for that, we’re using SHA 256 encryption.

All right, but we have another type of encryption as well. And this is for the signatory part. Okay, so for digital signatures, and for Bitcoin, we use something else. And this is called a ECDSA, which is elliptical curve cryptography. Let me give you an analogy that maybe this will make sense for you. So with Bitcoin and cryptocurrency, you never actually like download a coin. What you think of is like think of the blockchain, which is a database, think of a blockchain database as like a digital locker system. Okay, and so like, you have a public address of your locker, say C19.

And I could say, hey, would you go to my locker and you know, slide that envelope into my locker for me. So I’ve given you my public address of the locker C19. You can go and put something into the locker. Everybody can see the locker. Everybody knows their C19 right there. But then I have a private key where I could open the locker and get that envelope out and I can go put into another one. And that’s basically the way the blockchain database works as well. So we have a public address that everybody could see.

And we can hash into those and people can see transactions from them. It’s open, it’s transparent. But then I have the private key to then move Bitcoin from one wallet address to another wallet address. And so that’s what we’re talking about. So in order to move that Bitcoin, I have to sign it, I have to give it my digital signature and we’re using a signature algorithm. This is the elliptical curve. And this allows a private key to sign any type of message. Digital signatures are frequently used to sign transactions and to send the Bitcoin.

Okay. So that’s how it works. Now, this signature is published to the blockchain so that any member of the Bitcoin network can verify it’s transparent. So anyone can see this. We say, don’t trust, verify. Any member can verify that the signature, the public key and the message match. So now we can achieve consensus. The whole network can agree that this happened because it’s visible. Bitcoin is purely peer to peer. So it’s moving from one wallet address to another from my wallet to your wallet directly without going through an intermediary. Although miners process each transaction, they’re unable to produce the valid signature for other people’s Bitcoin.

So the miners are able to put the hash in the blockchain. But then you with your private key can sign that transaction to complete it. So those are the two different types of encryption. And they are very difficult to correct. Let me give you a visual way this works. So this is private knowledge right here. So this is the private key. Only I would have the key to open my locker C19 and the message. But this is all with public knowledge. So the public key, that’s C19. Everybody knows the locker address, the address of that blockchain address.

We have the signature. Everybody would know that I signed it. And we would see the message hash going into the signature verification. So everybody can verify all of this. But again, I only have my private key. Sorry if this is elementary for some of you. And maybe this is over your head for some of other you. If you’re more interested in this, again, there’s a ton of resources. Just go Google, you can find that. Okay, so to understand if this quantum computing is really a threat to Bitcoin, we want to go back in time a little bit.

So we can go back to when Bitcoin originated back in like 2009, when on the message boards, we had Satoshi interacting with other developers. And in those early messages, we can see that Satoshi actually envisioned something like this happening and being becoming a problem. So we can see here on the message board Satoshi, a founding senior member, this message is June 14th of 2010. So at that time, when Bitcoin was just coming out being introduced, they already were asking, but what about quantum computing? The same question I’ve been asked, you know, whatever 100,000 times.

Now at the time, they didn’t have quantum computing. But here’s what Satoshi said. He said that SHA-256, remember the Bitcoin hashing encryption, SHA-256 is very strong. He said it’s not like the incremental step from MD5 to SHA-1. It can last several decades. So this is in 2010, he said that. Unless there’s some massive breakthrough attack, which there hasn’t been, if SHA-256 became completely broken, which potentially could happen with Willow. And I’m going to tell you what that time frame looks like. If it becomes completely broken, we could come to some agreement about what the honest blockchain was before the trouble started.

And then we could continue from there. If the hash breakdown came gradually, so at this point, it’s coming gradually again, I’ll give you that time frame in a minute. If it comes gradually, which it is, we could then transition to a new hash in a orderly way. So already in 2010, they were being asked, what about quantum computing? And they said, hey, well, cool. When we have quantum computing that could break this encryption, then we can also use it to create a new encryption style. You see, so he was already predicting this.

And so these developers were already thinking about this. Now let’s talk about the time frame. So the main takeaway is one, they started to think about this right away. Number two, Bitcoin, as this decentralized technology, was designed to evolve. We don’t know what’s going to happen over the next hundred years, the next thousand years, but Bitcoin was designed to evolve with those times. Now, the developers have been aware of this for a really long time, as I said, back to 2010. But again, how fast is this coming? Could it catch them off guard, like he said, even if it did, we could do something about it.

But also, if we have more time, we can do it orderly. Okay, well, here’s Google’s timeline. Here’s a timeline of Google’s quantum processors, including their release years and qubits. So remember, the qubit measures how powerful that quantum computing is. So they had foxtail in 2016, it was 22. Today, let’s just fast forward to Willow, 2024, 105 qubits, which, okay, from 22 to 105, you can do the math about a five times upgrade. Well, the question then you would ask is, how many qubits would you need to get to become a threat to Bitcoin? Well, what we can see, again, there’s two different types of encryption.

But for the elliptical curve, for the digital signature, we’re going to need about 10,000 million qubits. The same for SHA-256, we need 1,000 to 1,500 logical, but the physical would need to be somewhere between 1,000 to 10,000 per logical qubit. So basically, we’ve already 5x’d in a decade, but now we’re going to need to go way beyond that. So what does that mean as far as time frame? Well, based off of this, knowing that things don’t move linear, they probably move exponentially, we’re somewhere in the 10 to 20-year range before it becomes a threat to Bitcoin.

Now, again, that gives us 10 to 20 years, which is a big range because it could move exponentially, but we’re already aware of this, and we can already start to move in an orderly fashion. Okay, so just summarizing this for you, for Bitcoin’s future in regards to quantum computing and the risks that’s there, number one, yes, quantum computing is, it’s coming, it’s actually here, all right, so it’s here, but it’s going to take time to evolve somewhere, like I said, 10 to 20 years, and we can move ahead.

Again, Bitcoin’s designed to adapt and to evolve in this, and again, we have this time frame, so all the developers are already working on solutions for this, which will be in place well before this happens. Okay, so that’s it for Bitcoin, but the one thing that I would always say to anybody who would ask me about, what about quantum computing destroying Bitcoin? As I’d say, well, there’s probably plenty of other high-value targets they could go after, so why go after this small little asset like Bitcoin, which is now about $2 trillion, when you can go after the world, like national security, toppling governments.

What about Department of Defense? What about taking over the military, the weapons, the nuclear weapons, all of that? What about central banks? I mean, printing yourself unlimited amounts of money and credit, or Wall Street, the finance, you know, traditional banking, wiping out loans, giving yourself loans, et cetera, and of course, there’s corporate espionage and all that, and I want to show you some examples of that, but just real quick, going back to Bitcoin for a second, thinking about game theory playing out, why would somebody first, who would they be, and why would they want to attack Bitcoin? Well, you could say it’d be the government’s one to shut it down, but with the United States, Russia, China, all moving to now adopt Bitcoin, I don’t think they would do that.

So then you would say, well, it would be some high-level crook that would want to steal a lot of the Bitcoin. Well, number one, they’d make way more money attacking one of these other networks, but more importantly, number two, if they did that, and they hacked into Bitcoin wallets or whatever, and they stole a bunch of Bitcoin, they’d basically make all that Bitcoin they just sold worthless, because if you could hack the Bitcoin network, then it would make it worthless, because it’s all about the security they have.

And so by hacking into it and stealing it becomes worthless, they’d be much better off doing some of these other high-value targets. And let’s take a look at that. We can already see, even without quantum computing, how big of a problem this is, so I’ll tell you how big it will be in the future. We can see FinTech, 45 of the top 50 banks have already confirmed being hacked and having their data stolen. 45 of the top 50 banks, they cannot keep their network secure. Let’s talk about some of the biggest ones we’ve had in recent time.

You might remember Equifax, it was one of the largest breaches in U.S. history, this is 2017, 143 million people, about almost half the population of the United States were affected. And what did they get? They got everything, social security numbers, birth dates, addresses, driver’s license, everything you need to go set up credit in somebody’s name, for 143 million people. Honeypots, first American financial corporation, 2019, 885 million records, 885, that’s multiple times the size of the United States. Again, social security numbers, mortgage paperwork, all the things you need to go set up credit in somebody else’s name.

Honeypots, that’s worth way more money. What about this? We have another really big one back here, NPD, National Public Data 2024, this was very recently, 2.9 billion personal records, exposed names, addresses, birth dates, social security numbers, nearly every American, again, that’s important data. Yahoo Breaches, 2013, 2014, 3 billion, 500 million, this is a big one, most important one. I think this is the biggest one in history. It’s called CAM-4 breach, this happened in 2020, 10.8 billion records, almost 11 billion records, I didn’t know what this one was, I had to go look it up, and it’s the largest data breach in history, a number of records, and this is one of the largest adult websites, and they got people’s sexual preferences, and browsing history, and emails, I mean, this led to a massive problem for people that use those things, and lots of other breaches, but if you think that’s bad, not just all of those Equifax, not just adult websites, not just NDB public records, not just that, how about supposedly, the number one hacking company, supposedly the safest computer network in the world, I’m talking about the NSA themselves, the US security agency were hacked, it says here shadow brokers leak, raises alarming questions, was the NSA hacked, and the answer is yes, it was, and so every single computer network is being hacked, the NSA was hacked, Bitcoin can’t be, so if quantum computing is here, which I already showed you it is, there’s a big problem, and so we have all of our infrastructures risk from water systems, to energy systems, to weapons systems, to banking systems, everything is at risk right now, and so this is opening up a massive problem, as well as a massive opportunity.

Now I want to go into a sponsored part of this video here, I’m going to talk about a sponsor, but this is highlighting a big potential opportunity. Okay, so with quantum computing already here, again, it’s about one billion times faster than regular computing, they’re now able to crack all the security, guessing people’s passwords, basically they can break into any database, so now cyber security needs to be upgraded, it’s sort of like the race with viruses right, so a new virus comes out, we need to update our antivirus software, and so now if we have new hacking tools, we have to upgrade the tools we use, to prevent the hackers from getting in, so cyber security needs to be upgraded, and this is coming out really fast, McKinsey and company, the largest consulting company in the world, they predict $2 trillion is coming just to this sector within the next couple of years, what is that quantum proof or encryption? Quantum proofing, here’s a chart you can see right here, if you think crypto was big, you think AI was big, this is quantum computing stocks right now, quantum computing stocks are absolutely flying right now, because of this, and we can see right here, think about it like in terms of this, forget meme coins, crypto meme coins, forget hype super cycles, this is a quantum super cycle, okay, so think about this, a trillion dollar asset class within a decade, so right now Bitcoin just hit $2 trillion, that’s 15 years, it took Bitcoin to get to $2 trillion, but McKinsey is saying they’re forecasting multi-trillion dollars for quantum in just a couple of years, the quantum industry has priced just one tenth of the valueless memes, and one half of tier two, so right now, quantum isn’t anywhere close to meme coins, or Bitcoin or any of that, but McKinsey is saying over $2 trillion is coming in in the next couple of years, and we’ll make this asset class way bigger than any of the meme coins or things like that, and so Scope Technologies is entering that space, helping companies create more secure encryption for their passwords, we’ll show you how that works in just a second.

Okay, now as far as the company goes, it was founded by Sean Prescott, he’s a former Swiss intelligence, he comes from what they call the Swiss NSA, hopefully they’re a little bit better than the US NSA that got hacked, and they’re the first to offer this quantum securities, this is like first to market, taking a product to the market that’s super hot right now, and basically what they do is they create 100% quantum resistant encryption keys, and so basically right now, is usually a last pass or some password manager to create this 12 character password, but it was created by some sort of an algorithm, which makes it very easy to track, and so what Scope Technologies is doing is giving you a way to upgrade those passwords right now, or allow companies to use this new type of encrypted passwords, so as this quantum computing is getting released, you’re not at risk.

Alright, so what Scope Technologies is doing is sitting at the forefront of this, and what we’re seeing is, there’s a complete frenzy of M&A, mergers and acquisition activity going on in the space, as I showed you some of these stocks in the quantum space are going up astronomically, because everybody realizes, now that Google will release this chip, they better do something about it. Lots of mergers and acquisitions happen in the space. Google, as a matter of fact, acquired a company called Wizz for 23 billion dollars, like it’s a race, it’s like a space race, so to speak, so Scope is now ready, they already have this product to roll out right now, with quantum encryption keys, which are basically random keys, so right now, if you’re using a password key generator, it’s coming from some sort of a program, it’s not randomized, and that’s a problem.

So for example, if you used, hopefully you don’t, something as simple as like password 123, for example, it would take that, and it would translate it into like a thousand character key, something long like this, even longer, right, I had to truncate it for this, and so it will create that randomized, it’ll be so long that even the new quantum computers won’t be able to crack that. So look, I’m not saying to go by Scope, this is a sponsored video, but I want to highlight this problem, and I want to highlight this opportunity, quantum computing is here right now, quantum computing stocks are flying through the roof, quantum computing is scheduled for McKinsey to get $2 trillion dumped in, which would make it bigger than crypto, make it bigger than everything, growing fast, and if you don’t buy this, at least put it on your watch list, and pay attention to what’s going on, because quantum computing is here, it’s going to be accelerating really rapidly, your Bitcoin is not at risk, but every other computer network is, all right, that’s what I got, hopefully you enjoyed this video, let me know what you think in the comments down below, give me a like if you liked it, and that’s what I got, all right, to your success, I’m out.

See more of Mark Moss on their Public Channel and the MPN Mark Moss channel.