BitGo CEO: Bitcoin Hacking is Impossible Amid AI Decryption Warnings

[Mexico City = Shim Young-jae, Correspondent] In response to warnings that artificial intelligence (AI) could undermine Bitcoin's cryptographic system, the CEO of digital asset custody firm BitGo has raised counterarguments. While he disagrees with claims that AI will decrypt Bitcoin's encryption, he acknowledges the necessity to enhance the security of digital asset wallets in preparation for quantum computer threats. BitGo has already assessed the risks of public key exposure and introduced a feature to transfer assets to new addresses.

According to a report by CoinGape on the 8th (local time), Mike Belshe, CEO of BitGo, expressed this stance in reaction to a recommendation from Ethereum researcher Justin Drake regarding 'bunker mode' preparations. Drake warned that AI could decrypt the mathematical cryptographic systems protecting Bitcoin and Ethereum wallets faster than expected. Consequently, he urged digital asset holders to consider transferring their assets to new addresses.

CEO Belshe agreed with Drake's conclusion that wallets should be proactively protected. However, he opposed the assertion that AI would actually decrypt Bitcoin's cryptographic system.

BitGo Introduces Public Key Exposure Assessment and One-Click Asset Transfer Feature

CEO Belshe explained that BitGo has already implemented a 'Quantum Resistance Score' feature to prepare for quantum computer threats. This feature indicates the level of protection for digital asset wallets as a percentage. It also allows users to check how many Bitcoin wallet addresses have exposed public keys.

BitGo provides a one-click feature to transfer assets stored at addresses with exposed public keys to new addresses. Users can utilize this feature to move assets from existing addresses to those where public keys are not exposed.

The algorithm for selecting unspent transaction outputs (UTXO) has also been improved. Previously, UTXOs were selected primarily based on transaction fees, but the modified algorithm is designed to consider resistance to quantum computer attacks.

CoinGape explains that the typical legacy address (P2PKH) and SegWit address formats for Bitcoin protect public keys through cryptographic hashes instead of exposing them directly on the blockchain.

However, whether public keys are exposed can vary depending on the address format and transaction history.

Earlier this year, CEO Belshe also questioned claims regarding AI's ability to hack Bitcoin. At that time, he challenged Anthropic to hack a wallet containing 100 Bitcoins, even publicly sharing the wallet address to prove it.

In his recent statements, CEO Belshe distinguished between the necessity to reduce public key exposure and enhance wallet security and the claim that AI could decrypt Bitcoin's digital signatures in a short period.

BitGo's quantum computer response technology is also linked to its digital asset custody business for institutional investors.

According to previous reports from CoinGape, the number of institutional clients for BitGo increased from 4,621 in the second quarter of this year to 5,833. During the same period, the normalized asset size grew from $49.6 billion to $65.2 billion.

Banks are integrating digital asset services while maintaining control over security, governance, and regulatory compliance by utilizing BitGo's Crypto-as-a-Service model.

Vitalik: AI Could Threaten Quantum-Resistant Cryptography

The debate surrounding AI's decryption capabilities is extending beyond Bitcoin's existing cryptographic systems to quantum-resistant cryptography.

According to CoinGape, Vitalik Buterin, co-founder of Ethereum, warned that AI could accelerate mathematical research, potentially weakening the security of lattice-based cryptography within the next two years.

The risks mentioned by Buterin are not limited to the elliptic curve digital signature algorithm (ECDSA), which is vulnerable to quantum computer attacks. He pointed out that lattice-based cryptographic technologies such as ML-DSA and fully homomorphic encryption (FHE) could also be affected by AI's mathematical advancements.

Lattice-based cryptography utilizes mathematical problems that are considered difficult for both classical and quantum computers to solve. It is being researched as one of the technologies to replace existing public key cryptography in the quantum computer era.

Buterin explained that Ethereum is focusing on a 'hash-only' cryptographic system that uses only hash functions rather than lattice-based methods.

The hash-based approach is believed to exhibit relatively strong resistance to mathematical attacks accelerated by AI.

As a countermeasure to reduce risks, Buterin recommended off-chain multi-signature verification and the use of new wallet addresses.

Off-chain multi-signature verification involves confirming approvals from multiple signers outside of the blockchain. Using new addresses is a measure to minimize public key exposure.

Europol, the European Union's law enforcement agency, has also urged the digital asset industry to prepare early for quantum computer threats.

According to CoinGape, Europol identified digital asset wallets as a major point exposed to quantum computer attacks.

In this debate, both CEO Belshe and researcher Drake shared a common position on the need to proactively enhance the security of digital asset wallets. However, they disagreed on whether AI could decrypt Bitcoin's cryptographic system in a short period.

CEO Belshe emphasized the need for technical responses to reduce public key exposure and prepare for quantum computer attacks while disagreeing with the possibility of decryption by AI.

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