AI translated#Podcast

Roman Oleynikov: Quantum Computers Could Awaken Satoshi’s Dormant Bitcoins

26.07.2025 ForkLog

In the era of quantum computing, blockchain security issues have become particularly pertinent. Roman Oleynikov, an IOHK researcher, discussed the quantum threat and the specifics of the Cardano cryptocurrency with ForkLog.

ForkLog (FL): You have been working on the Cardano blockchain for a long time. What are the main advantages of the platform?

Roman Oleynikov (R.O.): Cardano has always emphasized a scientific approach, which is its strong suit. I was intrigued to participate in the development of the Ouroboros consensus—the first provably secure PoS protocol on which Cardano is launched. This protocol boasts very high security metrics, unattainable for many others: for instance, the probability of a successful double-spending attack is extremely low, even if the attacker has substantial resources.

Overall, the platform evolves through academic research and formal code verification. Yes, this approach takes more time than a quick “knee-jerk” launch, but in the end, we achieve strict mathematical proof of security and reliable implementation. This gives users and investors more confidence in Cardano’s technology.

FL: Cardano co-founder Charles Hoskinson is known for being sharp and straightforward on social media. What is he like in person and at work?

R.O.: In real life, Charles comes across as a versatile individual and a demanding leader. As a manager, Hoskinson sets the bar very high: he aims to gather the best specialists from around the world and expects world-class results from them in a short time frame.

Charles also has a wide range of interests outside of work. For example, he is fascinated by antique clocks—once, during a meeting, he enthusiastically showed me a pocket watch from World War I with a bullet scratch that once saved a soldier’s life.

FL: What is the main idea behind Bitcoin and cryptocurrencies in general, and what do they bring to the financial system?

R.O: Bitcoin is truly a brilliant idea by Satoshi Nakamoto. It has led the crypto industry to its current state. The idea of providing financial freedom, even in countries where the banking system is not well-developed or is heavily regulated, is simply magnificent.

The first implementation, which is described in the white paper, is simple or relatively simple. In my subjective opinion, this document was written by a graduate student, although it found very successful ideas that are now evolving.

FL: Why do you think so?

R.O.: The style of presentation suggests this. The white paper text shows small errors and simplifications that are uncharacteristic of mature academics. For example, where the author provides combinatorial estimates, he confirms them with a numerical example just in case.

There is even a minor mistake—he substitutes one random variable with its expected value. Such a less formal approach is more typical of someone at the master’s or graduate student level, rather than an experienced PhD. Therefore, it seems that Satoshi Nakamoto was indeed a young researcher, possibly a graduate student.

FL: How real is the quantum threat to Bitcoin?

R.O.: I am quite skeptical about the prospect of an immediate “hack” of Bitcoin by a quantum computer in the coming years. There is still no breakthrough: current quantum machines have dozens of qubits, while thousands are needed to threaten leading blockchains—a colossal technological challenge. However, we need to be ready to switch to post-quantum cryptography so that at the first signs of a threat, the system can be transitioned to new algorithms within a month or two.

If we hypothetically imagine the emergence of a powerful quantum computer right now, the first to suffer could be early Bitcoin addresses of the old format, where public keys are not hashed (for example, those “dormant” Satoshi coins). An attacker could compute the private keys of such addresses and gain access to large sums. The mass introduction of previously lost bitcoins into circulation would crash the market. Fortunately, modern addresses in Bitcoin and other chains already use public key hashing, and even quantum hacking is not so simple against them.

FL: Are blockchains on Proof-of-Work more vulnerable to quantum computer hacking than those on Proof-of-Stake?

R.O.: The consensus mechanism itself is not the main cause of vulnerability. More important is how quickly the community and developers can update cryptographic algorithms and secure vulnerable accounts.

Bitcoin has features that potentially complicate protection: a long interval between blocks and a large number of old addresses with open keys. Proof-of-Stake networks are more flexible in this regard—they usually have shorter update cycles, and their architecture initially provides for faster upgrades. A proactive stance and readiness for updates are most important, and Cardano’s academic approach is rather an advantage here, allowing it to meet the quantum era fully armed.

FL: What technologies will achieve the next major breakthroughs in the blockchain industry?

R.O.: Most likely, the main leap will come from the mass adoption of zero-knowledge proofs (ZK). It is already evident that solutions based on ZK proofs allow blockchains to scale thousands of times.

Complex computations can be taken off-chain, and only small cryptographic proofs of their correctness are entered into the blockchain. This dramatically increases throughput and removes many limitations like gas for smart contracts.

In the future, thanks to ZK technologies, much more complex tasks can be performed on the blockchain—even training AI models with subsequent verification of the result on the chain. When these developments mature, we will see a qualitative leap: decentralized systems will become much more powerful and faster than they are today.