El Salvador has restructured its bitcoin treasury administration, shifting away from a single-wallet strategy to distributing holdings throughout a number of addresses.
As of August 30, the nation’s Nationwide Bitcoin Workplace confirmed that no particular person handle now holds greater than 500 BTC, with the federal government’s complete stash of 6,284 BTC—value over $681 million—unfold throughout 14 separate addresses.
Motivation for the shift
The Salvadoran authorities acknowledged that this transformation aligns its reserve technique with world finest practices and addresses dangers posed by advances in quantum computing.
Quantum machines may theoretically compromise the cryptography defending bitcoin non-public keys, elevating issues in regards to the long-term safety of digital wallets.
Beforehand, El Salvador’s use of a single, reused handle uncovered its public key indefinitely, growing vulnerability to potential assaults.
Decreasing quantum publicity
By distributing funds throughout a number of unused addresses, the federal government goals to restrict publicity.
The Nationwide Bitcoin Workplace defined:
“Limiting funds in every handle reduces publicity to quantum threats as a result of an unused Bitcoin handle with hashed public keys stays protected. As soon as funds are spent from an handle, its public keys are revealed and weak. By splitting funds into smaller quantities, the affect of a possible quantum assault is minimized.”
Trade response and ongoing accumulation
Stacy Herbert, head of the Nationwide Bitcoin Workplace, described the transfer as each strategic and precautionary, noting El Salvador’s management in establishing a Strategic Bitcoin Reserve.
Nick Neuman, co-founder of CasaHODL, praised the nation for taking proactive steps to guard its holdings.
As of press time, pseudonymous analyst Mononaut reported that the federal government’s bitcoin is now distributed throughout 14 newly created addresses.
For extra particulars on El Salvador’s present and historic bitcoin holdings, see the El Salvador bitcoin treasury tracker.