a new player has entered the game and it's called The Willow Quantum chip it's Google's latest breakthrough and computing power now the internet is a blaze with one question could this Quantum machine destroy Bitcoin and why stop there what about higher value targets central banks Department of Defense corporations or more well the headlines are terrifying the debates online are pretty heated in the stakes well of course they're higher than ever but what if I told you the truth is actually far more fascinating in this video I'm going to break down what Google Willow chip really
is we talk about the potential risk that it poses to bitcoin if you're holding Bitcoin uh should you be worried and we're going to look at other infrastructure that's at risk as well now real quick my name is Mark Moss I've been making Bitcoin content for over8 years I'm a Bitcoin focused Venture Capital investor and in this video I'm going to share some of the same insights that I've learned and we use every single day so let's go all right now I've been making content specifically for Bitcoin for now over8 years and if I had
just $1 for every single time somebody told me yeah but Quantum Computing is going to destroy the whole thing well I'd probably have well enough to buy one whole Bitcoin I've been asked that question a lot and I would typically answer something like yeah well what about aliens they could come destroy the world tomorrow too if you want to deal with hypotheticals because there is no Quantum Computing right that's my typical answer but the answer's changed because now Quantum Computing is here so now rather than having to answer you know answer some hypothetical in the
future maybe threat like an asteroid destroying the earth now we have a real thing so let's talk about that for a minute because now let me answer this question for once in all and then when people ask me I'll send them the video okay so introducing Google's new Willow chip like I said the first real Quantum Computing that we've had the first real threat we have to break encryption including potentially bitcoin's encryption okay so first of all they've been working on this on a long time Google has basically cracked a 30-year challenge they've been working
on this for a really long time now what Quantum Computing does is it uh allows computers to be way more powerful and allows them to process way more transactions so if a computer was trying to guess a password for example like your typical 12 character password that might have one capital letter and one character it could take a regular computer I don't know something like 35,000 years but a quantum computer because it could try so much faster could break it in minutes potentially okay so they've been working on this for over 30 years now what
they've been able to do the Breakthrough that they've had is as this quantum computer is processing transactions it's able to reduce the errors and because of that they're able to scale these cubits okay so this is sort of how they measure the the speed and the processing power of these quantum computers so this quantum computer is so fast it could crack a code in about five minutes that would take a regular computer 10 septian years I don't even know what that is 10 seon years which is 10 to the 25th power or it basically looks
like this uh that many zeros haven't added them up it's a really long time 107 million years so this is a really fast Innovation that Google's been able to do okay so the question is then what will they do with this new power and is it a threat to bitcoin and is it a threat to encryption overall let's break that down so the first thing is we have to understand that Bitcoin represents an entire shift in the way technology is built you hear me talk about this regularly if you watch my videos talking about the
decentralized revolution so what we have is that basically all of our databases uh Experian Amazon your bank the Central Bank Etc they're all centralized databases all the data sits in one Central database and it's controlled it's protected by the cyber security team versus Bitcoin has now introduced a decentralized database and so really what we're witnessing is centralization versus decentralization now besides the main aspect of one database versus many databases we have different types of encryption let me just break down the centralized versus decentralized so this is what's going on the internet actually started as a
very decentralized uh ecosystem as a matter of fact when I launched my first internet business back in 1999 I had to have a server in my office with my own servers with raid hot hot you know swappable hard drives Etc because there was no Amazon Cloud there was nothing like that so I had to run my own server so at that time the internet was was very decentralized everybody ran their own database right and uploaded directly to the cloud but since then what's happened is the internet got very centralized so now you log in with
your Facebook ID or your Google ID everything sits on the Amazon Cloud everything runs through our Gmail or Google right and so everything got centralized the problem with centralized systems is we see how they're prone to um fraud manipulation um also break-ins we'll talk about that in a minute now what we can see is where we're at is centralized systems are now starting to go down for many reasons I'm going to break down for you and we're starting to see the rise now of decentralized systems and so this going to be a massive Paradigm Shi
that will happen over the next 25 30 years I talk about this quite often but to break this down again centralized versus decentralized again so you have one database your bank Amazon Experian Etc um and think of it like this like if you had $1 billion dollar in One bank that's a really big Target there's a lot of people that potentially break into that bank try to you know Crack the Code of that bank to get that billion dollars but if I had a billion banks with $1 each what's the point it's way too much
work for me to go to each bank one by one in one and break into them to get $1 at a time a billion times I wouldn't do it and that's the difference of centralized versus decentralized systems now in Bitcoin specifically let's dig into this there's different types of encryption so when you think of Experian and I'm going to talk about all some of the biggest breaks and as a matter of fact the biggest database most secure database in the world was hacked I'm going to tell you what that was in a second we have
to understand that all all of those centralized systems run a different type of encryption than Bitcoin so first we'll talk about Bitcoin then we'll get to the rest so a couple ways to think about this encryption so database encryption your typical database uses symmetric encryption algorithms like AES for example Advanced encryption standards now Bitcoin uses different encryption as a matter of fact it uses two different types of encryption and this is primarily uses asymmetric cryptography all right so there's elliptical curve and there's Shaw 250 six let me break those down for you just so you
can understand I'm not going to go super deep into the weeds here I want to give you the base information so you can understand this and at least sound intelligent if you want to have a conversation and if you want go research this if you're a computer nerd uh you can go research this a little bit more okay so the first thing is there's um there's different parts of the Bitcoin Network itself there's Bitcoin the network and there's Bitcoin the asset that moves on the network and the Bitcoin Network itself uses mining computers to process
transactions this is hashing right and then there's the transactions themselves more of the nodes we'll talk about that in a second so first is we have Bitcoin protocol and it uses the sha256 you might have heard of this before this is for all hashing operations so for the Bitcoin mining the processing computers to process the transactions they mark them as a hash that's now saved in time in this block for everyone to see all right this is what we call proof of work a proof of work mechanism in order for a minor to submit a
block to the Network the hash of the block must be below a certain threshold so it's basically trying to figure out this uh code and if it gets that then it will put that hash into the blockchain all right so for that we're using Shaw 256 encryption all right but we have another type of encryption as well and this is for the signatory part okay so for digital signatures and for Bitcoin we use something else and this is called a um EC DSA which is elliptical curve cryptography let me let me give you an analogy
that maybe this will make sense for you so with Bitcoin and cryptocurrency you never actually like download a coin what you think of is like think of the blockchain which is a database think of a blockchain database as like a digital locker system okay and so like uh you have a public address of your locker say c19 and I could say hey would you go to my locker and you know slide that envelope into my locker for me so I've given you my public address of the locker c19 you can go and put something into
the locker everybody can see the locker everybody knows there c19 right there but then I have a private key where I could open the locker and get that envelope out and I can go put into another one and that's basically the way the blockchain database works as well so we have a public address that everybody can see and we can hash into those and people can see transactions from them it's open it's transparent but then I have the private key to then move Bitcoin from one wallet address to another wallet address and so that's what
we're talking about so in order to move that Bitcoin I have to sign it I have to give it my digital signature and we're using a a signature Al algorithm this is the elliptical curve and this allows a private key to sign any type of message disal signatures are frequently used to sign transactions and to send the Bitcoin okay so that's how it's works now the signature is published to the blockchain so that any member of the Bitcoin Network can verify it's transparent so anyone can see this we say don't trust verify any member can
verify that the signature the public key and the message match so now we can achieve consensus the whole network can agree that this happened because it's visible Bitcoin is purely peer-to-peer so it's moving from one wallet address to another from my wallet to your wallet directly without going through an intermediary although miners process each transaction they're unable to produce the valid signature for other people's Bitcoin so the miners are able to put the hash in the blockchain but then you with your private key can sign that transaction to complete it so those are the two
different types of encryption and they uh are very difficult to crack let me give you a visual way this works so this is private knowledge right here so this the private key only I would have the lock the key to open my locker c19 and the message but this is all what's public knowledge so the public key that's c19 everybody knows the locker address the the address of that uh blockchain address uh we have the signature everybody would know that I signed it and we would see the message hash going into the signature VAR verification
so everybody could verify all of this but again I only have my private key sorry if this is Elementary for some of you uh and maybe this is over your head for some of other of you if if you're more interested in this again there's a ton of resources just go Google it you can find that okay so to understand if this Quantum Computing is really a threat to bitcoin we want to go back in time a little bit so we can go back to when Bitcoin originated uh back in like 2009 when on the
message boards we had Satoshi interacting with other developers and in those early messages we can see that Satoshi actually envisioned something like this happening and being becoming a problem so we can see here on the message board Satoshi a founding senior member this message is June 14th of 2010 so at that time when Bitcoin was just coming out being introduced they already were asking but what about Quantum Computing the same question I've been asked you know whatever 100 thousand times now at the time they didn't have Quantum Computing but here's what Satoshi said he said
that Shaw 256 remember the Bitcoin hashing encryption two Shaw 56 is very strong he said it's not like the incremental step from md5 to sha one it can last several decades this is in 2010 he said that unless there's some massive breakthrough attack which there hasn't been if Shaw 256 became completely broken which potentially could happen with Willow and I'm going to tell you what that time frame looks like if it becomes completely broken we could come to some agreement about what the honest blockchain was before before the trouble started and then we could continue
from there if the hash breakdown came gradually so at this point it's coming gradually again I'll give you that time frame in a minute if it comes gradually which it is we can then transition to a new hash in a orderly way so already in 2010 they were being asked what about Quantum Computing and they said hey well cool when we have Quantum Computing that could break this encryption then we can also use it to create a new encryption style you see so he was already predicting this and so these developers were already thinking about
this now let's talk about the time frame so the the main takeaway is one they started to think about this right away number two Bitcoin as this decentralized technology was designed to evolve we don't know what's going to happen over the next hundred years the next thousand years but Bitcoin was designed to evolve with those times now the developers have been aware of this for a really long time as I said back to 2010 but again how fast is this coming could it catch them off guard like he said even if it did we could
do something about it but also if we have more time we can do it orderly okay well here's Google's timeline here's a timeline of Google's Quantum processors including their release years and cubits so remember the Cubit measures how powerful that Quantum Computing is so uh they had foxtail in 2016 it was 22 uh today let's just fast forward to Willow 2024 105 cubits which okay from 22 to 105 you can do the math about a five times upgrade well the question then you would ask is how many cubits would you need to get to become
a threat to bitcoin well what we can see again there's two different types of encryption but for the elliptical curve uh for the Dig digital signature we're going to need about um 10,000 uh million cubits uh the same for Shaw 256 we need 1,00 to 1500 logical but the physical would need to be somewhere between 1,00 to 10,000 per logical Cubit so basically we're we've already 5X a decade but now we're going to need to go way beyond that so what does that mean as far as time frame well based off of this knowing that
things don't move linear they probably move exponentially we're somewhere in the 10 to 20 year range before it becomes a threat to Bitcoin now again that gives us 10 to 20 years which is a big range because it could move exponentially but we're already aware of this and we can already start to move in an orderly fashion okay so just summarizing this for you for bitcoin's future in regards to Quantum Computing and the risk that's there number one yes Quantum Computing is it's coming it's actually here all right so it's here but it's going to
take time to evolve somewhere like I said 10 to 20 years and we can move ahead again bitcoin's designed to adapt and to evolve in this and again we have this time frame so all the developers are already working on solutions for this which will be in place well before this happens okay so that's it for Bitcoin but the one thing that I would always say to anybody would ask me about what about Quantum Computing destroying Bitcoin I'd say well there's probably plenty of other high value targets they could go after so why go after
this small little asset like Bitcoin which is now about $2 trillion when you can go after the world like National Security toppling governments uh what about Department of Defense what about taking over the military the weapons the nuclear weapons all of that uh what about central banks I mean printing yourself unlimited amounts of money and credit or Wall Street the finance you know uh traditional banking wiping out loans giving yourself loans Etc and of course there's corporate Espionage and all that and I want to show you some examples of that but just real quick going
back to bitcoin for a second thinking about Game Theory playing out why would somebody first who would they be and why would they want to attack Bitcoin well you could say it' be the government's want to shut it down but with the United States Russia China all moving to now adopt Bitcoin I don't think they would do that so then you would say well it would be some highlevel crook that would want to steal a lot of the Bitcoin well number one they'd make way more money attacking one of these other networks but more importantly
number two if they did that and they you know hacked into Bitcoin wallets or whatever and they stole a bunch of Bitcoin they' make basically make all that Bitcoin they just sold worthless because if you could hack the Bitcoin Network then it would make it worthless because it's all about the security they have and so by hacking into it and stealing it becomes worthless they'd be much better off doing some of these other high value targets and let's take a look at that we can already see even without Quantum Computing how big of a problem
this is so I'll tell you how big it will be in the future we can see fintech 45 of of the top 50 banks have already confirmed being hacked and having their data stolen 45 of the top 50 Banks they cannot keep their um Network secure let's talk about some of the biggest ones we've had in recent time you might remember Equifax it was one of the largest breaches in US history this is 2017 143 million people about almost half the population of the United States were affected and what did they get they got everything
Social Security numbers birth dates addresses driver's license everything you need to go set up Credit in somebody's name for 143 million people honeypots first American Financial Corporation 2019 885 million records 885 that's multiple times the size of the United States again Social Security numbers mortgage paperwork all the things you need to go set up Credit in somebody else's name honey Poots that's worth way more money what about this we have another really big one back here NPD national public data 2024 this was very recently 2.9 billion 2.9 billion personal records exposed names addresses birth dates
Social Security numbers nearly every American again that's important data uh Yahoo breaches 2013 2014 3 billion 500 million this is a big one most important one I think this is the biggest one in history it's called cam 4 breach this happened in 2020 10.8 billion records almost 11 billion records I didn't know what this one was I had to go look it up and it's a largest data breach in history a number of records and this is one of the largest adult websites and they got people's uh sexual preferences and browsing history and emails I
mean this led to a massive problem for people that use those things um and lots of other breaches but if you think that's bad not just all of those Equifax not just adult websites not just NDB public records not just that how about supposedly the number one hacking uh company supposedly the safest computer network in the world I'm talking about the in SAA themsel the US's Security Agency were hacked it says here Shadow Brokers leak raises alarming questions was the NSA hacked and uh the answer is yes it was and so every single computer network
is being hacked the NSA was hacked yet Bitcoin can't be so if Quant Quantum Computing is here which I already showed you it is uh there's a big problem and so we have all of our infrastructures R from Water Systems to Energy Systems to Weapons Systems to banking systems everything is at risk right now and so this is opening up a massive problem as well as a massive opportunity now I want to go into a sponsored part of this video here I want to talk about a sponsor but this is highlighting a big potential opportunity
okay so with Quantum Computing already here again it's about 1 billion times faster than regular Computing they're now able to crack all the security guessing people's passwords basically they can break into any um database so now cyber security needs to be upgraded it's sort of like the race with viruses right so a new virus comes out we need to update our antivirus software and so now if we have new hacking tools we have to upgrade the tools we'd use to prevent the hacker from getting in so cyber security needs to be upgraded and this is
coming on really fast McKenzie and Company the largest consulting company in the world they predict $2 trillion is coming just to this sector within the next couple of years uh what is that Quantum proof or encryption Quantum proofing um here's a chart you can see right here if you think crypto was big you think AI was big this is quantum Computing stocks right now Quantum Computing stocks are absolutely flying right now because of this and we can see right here think about it like in terms of this uh forget meme coins crypto mem coins forget
hype super Cycles this is a Quantum super cycle okay so think about this um a trillion doll asset class within a decade so right now Bitcoin just hit $2 trillion okay that's 15 years it took Bitcoin to get to $2 trillion but McKenzie is saying they're forecasting multi- trillion dollars for Quantum in just a couple of years the quantum industry has priced just one tenth of the valueless memes and one half of tier 2 so right now Quantum isn't anywhere close to meme coins or Bitcoin or any of that but Mackenzie is saying over2 trillion
dollar is coming in in the next couple of years will make this asset class way bigger than any of the meme coins or things like that and so SC hope Technologies is entering in that space helping companies create more secure encryption for their passwords we'll show you how that works in just a second okay now as far as the company goes it was founded by Sean Prescott he's a former Swiss intelligence um he comes from what they call the Swift Swiss NSA hopefully they're a little bit better than the US NSA that got hacked uh
and they're the first to offer this Quantum security this is like first to Market taking a product to the market that's super hot right now and basically what they do is they create 100% Quantum resistant encryption keys and so basically right now is a you use a last pass or some password manager to create this 12 character password but it was created by some sort of an algorithm which makes it very easy to track and so what scope technology is doing is giving you a way to upgrade those passwords right now or allow companies to
use this new type of encrypted passwords so as this Quantum Computing is getting released you're not at risk all right so what scope techn ol is doing is sitting at the Forefront of this and what we're seeing is there's a complete frenzy of m&a mergers and acquisition activity going on in the space as I showed you some of these stocks in the quantum space are going up astronomically because everybody realizes now that Google Willow release this chip they better do something about it lots of mergers and Acquisitions happen in the space Google as a matter
of fact acquired a company called whiz for 23 billion dollar like it's a it's a race it's like a space race so to speak so scope is now ready they already already have this product to roll out right now with Quantum encryption Keys which are basically random keys so right now if you're using a password uh key generator it's coming from some sort of a program it's not randomized and that's a problem so for example if you used hopefully you don't something as simple is like password 1 two 3 for example uh it would take
that and it would translate into like a thousand character key uh something long like this uh even longer right I had to trunk dat it for this and so it will create that randomized it'll be so long that even the new quantum computers won't be able to crack that so look I'm not saying to go by scope this is a sponsored video but I want to highlight this problem and I want to highlight this opportunity Quantum Computing is here right now Quantum Computing stocks are flying through the roof uh Quantum Computing is scheduled per Mackenzie
to get $2 trillion doll dumped in which would make it bigger than crypto make it bigger than everything growing fast and if you don't buy this uh at least put it on your watch list and pay attention to what's going on because Quantum Computing is here it's going to be accelerating really rapidly your bitcoin's not at risk but every other computer network is all right that's what I got hopefully you enjoyed this video let me know what you think in the comments down below give me a like if you liked it and that's what I
got all right to your success I'm out
