Key Takeaways
- Five transactions see 107 BTC transferred to burn addresses
- In theory, the private key of burn addresses can be derived by quantum computers, according to debate
What Led to the Disappearance
SaniExp, on-chain analyst, detected and reported on May 26 that a total of 107 Bitcoin (BTC) was suddenly transferred to the burn address “1111111111111111111114oLvT2” through five transactions. The total transferred amount is equivalent to approximately 1.3 billion yen (107 BTC). The identity of the sender is not known. Neither is the reason for the sending.
Burn address’s public keys consist of only zeros; no one can hold the corresponding private key. In current cryptographic technology, the BTC transferred to a burn address is permanently immobile and permanently excluded from the circulation.
The current burn addresses have previously accepted over 146,000 transactions. With the addition of this 107 BTC, the total holding has surpassed 807 BTC.
What is ‘Quantum Bounty’
Adam Bach, Blockstream chief, on May 27 described the transfer on social media platform X as an “accidental quantum bounty.” The public key of the burn address is structurally visualized on-chain. If a significantly powerful quantum computer is created, it is possible in theory to derive the corresponding private key.
Mr. Bach made his stance clear in April this year against the “forced freezing and invalidation of old addresses,” which is being discussed as a measure against quantum computers. For him, the idea that transitioning to quantum-resistant addresses should be left to users’ discretion.
The public key of the burn address where the 107 BTC was sent is available on-chain for anyone to verify. If the required performance to derive the private key has been realized by a quantum computer, BTC accumulated in burn addresses could become the first target. Mr. Bach referred to this transfer as a “bounty” in reference to this structure.
