This week, Ethereum researchers warned that, in the worst-case scenario, AI could crack the signatures securing Bitcoin and Ethereum in "months, not years," even before quantum computers arrive.
This information did not satisfy Adam Back, an early Bitcoin pioneer and CEO of Blockstream, who criticized Ethereum’s early design decisions in an X post.
Back particularly criticized Ethereum's early developers, saying they lacked experience and that despite warnings from others, they "reimplemented an obviously flawed architecture."
This Blockstream CEO believes that Bitcoin’s pseudonymous founder, Satoshi Nakamoto, chose the unspent transaction output (UTXO) model for the BTC network, reflecting a deeper understanding of distributed systems and peer-to-peer network design.
Back means: "It's almost as if Satoshi knew something about distributed systems."
Here, UTXO stands for "Unspent Transaction Output," a model that operates like physical cash: discrete coins or outputs are spent and generate new coins or outputs; blockchains such as Bitcoin and Cardano use this model.
Ethereum does not use UTXO; instead, it employs an account-based model (similar to traditional banking ledgers), where each user or smart contract has a persistent balance and state that is directly updated with every transaction.
Although Ethereum currently relies on an account-based model, Ethereum researchers have proposed experimental frameworks to introduce optional UTXO-style features, such as Ethereum Improvement Proposal EIP-8141. This proposal introduces a new transaction type (0x06, or Frame Transactions) designed to enable native account abstraction and post-quantum readiness.
What happened?
Ethereum researcher Justin Drake said on X on Wednesday that the entire crypto industry should begin preparing for a "fortress mode," warning that in the worst-case scenario, AI could find a way to break the mathematical mechanisms protecting Bitcoin and Ethereum wallets in "months, not years."
Therefore, Drake urges large holders to begin gradually transferring their funds to new addresses.
Ethereum co-founder Vitalik Buterin also commented on Drake's statement, saying he would not advise anyone to hastily transfer funds to a new wallet at this time, but added that AI-accelerated mathematical risks still warrant serious attention.
Buterin wrote on X: "I do not advise anyone to hastily transfer funds to a new wallet today. However, we should take seriously the risks that AI-accelerated mathematics poses to cryptography and strive to minimize our exposure to not only quantum-vulnerable cryptography, but also potentially AI-vulnerable cryptography."