Making Handles in Bitcoin is more resistant to attackers in volume: the way El Salvador
El Salvador’s —Iverhaul of how it saves the country’s Bitcoin, saying that change both strengthens security now and prepares for technological risks that may arise in the future.
In a announcement On Friday, the Bitcoin office said the entire reserve of the country was moved to a single purse and spread to many new ones. Each purse will hold no more than 500 BTC, a limit intended to reduce potential damage if any of them have ever compromised.
Officials have described new setups such as compliance with industry skills while also expected to advance Quantum Computing. Volume machines, they mentioned, may one day break the cryptographic math that ensures Bitcoin, as well as sunny systems such as banking, email and online communication.
Remembering appeared when coins were spent. To move Bitcoin, the digital signature that protects those funds must be revealed to the blockchain. Now, it’s safe, but in theory a future computer can take advantage of exposed information to calculate the private key and steal coins before the transaction is confirmed.
By moving coins to many unused purses, El Salvador reduces the chance that its reserve is left with so many exposed keys at the same time. Most of its holdings remain locked behind the information that cannot be attacked, and the size of each wallet means that even a violation will not be at risk for the entire reserve.
The government also admitted that its previous setup – keeps everything in a single address for the sake of transparency – create unnecessary exposure. That address is repeatedly used, which means its keys can be seen in the blockchain almost continuous. In the new model, a Public Dashboard Allows anyone to monitor the reserve in multiple purses, maintaining responsibility without repeating the re -use of the same address.
In simple terms, the transition is like transferring money to a giant vault and in a series of smaller safes. The locks in the safes remain hidden until they are opened, and there is no safe holding money.
Beyond the angle of volume, it also lined up with the basic care of Bitcoin. Experienced users often warn against the reuse of the same purse repeatedly, as it weakens privacy and security. They also recommend destroying large balances in smaller chunks, which limits the fall when something goes wrong.
That’s why Adam, one of Bitcoin’s first pioneers and the Blockstream CEO, returned, returned, praised The change. Write to X, he said it was “generally a good practice” to divide funds into several pieces – called Utxos in the jargon of Bitcoin – rather than tie them to one place and reuse the same address.
Back, which invented the hashcash of the proof-of-work system that inspired Bitcoin and mentioned by Satoshi Nakamoto, was not directly weighing in the whole argument. Instead, his comment emphasized that El Salvador’s new approach reflects the principles that have long been recognized as the best practice in the world of bitcoin.
Most researchers believe that computers who are strong enough to threaten Bitcoin are a decade or more, and the network can adopt new protections as needed. But El Salvador is not waiting.
By incorporating transparency into a more elastic storage model, the country is positioned itself as a test case for how Bitcoin reserves can be managed in the future – setting a potential plan that others can follow.
