[HN Gopher] Bitcoin puzzle #66 was solved: 6.6 BTC (~$400k) with...
       ___________________________________________________________________
        
       Bitcoin puzzle #66 was solved: 6.6 BTC (~$400k) withdrawn
        
       Author : mrb
       Score  : 172 points
       Date   : 2024-09-15 13:30 UTC (9 hours ago)
        
 (HTM) web link (www.blockchain.com)
 (TXT) w3m dump (www.blockchain.com)
        
       | mrb wrote:
       | Discussion thread here:
       | https://bitcointalk.org/index.php?topic=1306983.msg64526037#...
       | 
       | Bitcoin puzzles are private keys with just a few unknown bits so
       | that anyone can bruteforce them to collect a reward. Puzzle 66
       | contained 66 unknown bits and had 6.6 BTC deposited into it by
       | the initial puzzle creator. The private key was 0x000000000000000
       | 000000000000000000000000000000002832ed74f2b5e35ee or 256 bits
       | with mostly zeroes but 66 random ones.
       | 
       | The next Bitcoin puzzle, #67, has 67 unknown bits, and contains
       | 6.7 BTC up for grabs:
       | https://www.blockchain.com/explorer/addresses/btc/1BY8GQbnue...
       | 
       | The previous puzzle by order of difficulty was #64 (not #65,
       | because see below) and was solved on 9/9/2022, so about 2 years
       | ago. In other words, it took about 2 years of compute time to run
       | the 2^66 bruteforcing task.
       | 
       | Puzzles that are multiple of 5 (#65 or #70) are special: they
       | have twice more entropy. So that private key #65 doesn't have
       | 65-bit of entropy but 130-bit of entropy. And the creator of the
       | puzzle intentionally published their public key on the
       | blockchain. When you know the public key, brutetforcing the n-bit
       | private key only requires 2^(n/2) work. So puzzle #65 with a
       | 130-bit key actually require bruteforcing up to only 2^65 keys.
        
         | wslh wrote:
         | New to this puzzle! Do you have a more detailed resource to the
         | puzzle? Is it basically brute forcing based on all public keys
         | available on the Bitcoin blockchain? Could this be considered
         | stealing?
        
           | mrb wrote:
           | Sure, here is a nice little presentation on the puzzle:
           | https://rya.nc/forensic-bitcoin-cracking.html
           | 
           | The main discussion thread on the bitcoin forum is this but
           | it has a low signal-to-noise ratio:
           | https://bitcointalk.org/index.php?topic=1306983.0
           | 
           | There is a secondary thread here:
           | https://bitcointalk.org/index.php?topic=5218972.0
           | 
           | The point of the puzzle is indeed to brute force some private
           | keys (not public keys), but not all, as 2^256 is
           | computationally impossible. The private keys that have been
           | discovered so far have obviously many zeros in them, so in
           | practice you are never going to accidentally steal from a
           | legitimate address with actually 256 bits of entropy.
           | 
           | The creator of the puzzle is anonymous and never came forward
           | (to my knowledge). The point of the puzzle is (1) to be a fun
           | game, and (2) to be a publicly observable way of measuring
           | current brute forcing capabilities.
        
             | wslh wrote:
             | First, a question: is there something similar for other
             | blockchains? And, a clarification, when I said public keys
             | I referred to public keys that match an unknown private key
             | but I understand now (am I correct?) that this puzzle is
             | purely brute forcing private keys with a lot of zeroes and
             | then matching with the addresses in the blockchain (which
             | would be a function from the public key).
        
               | mrb wrote:
               | I don't know if other blockchains have these puzzles. You
               | are correct thas this puzzle is brute forcing private
               | keys with a bunch of zeroes, from which a public key can
               | be calculated.
        
         | ForHackernews wrote:
         | Is this a "puzzle"? Throwing compute at brute-forcing a random
         | number doesn't seem like solving a puzzle to me, it's basically
         | how bitcoin works.
        
           | aeturnum wrote:
           | I think the puzzle idea is that, if you could figure out a
           | weakness in the hash, you could claim it faster than the
           | brute force approach. So each prize that's claimed "on
           | schedule" supports the idea that there aren't any widely
           | known shortcuts.
           | 
           | Obviously if you found a shortcut in the hash you might do
           | other things first, but I think that's the idea.
        
             | IshKebab wrote:
             | Hmm yeah if I cracked Bitcoin then _last_ thing I 'd do is
             | claim a prize that gave away the fact that I'd cracked
             | Bitcoin.
        
               | mr_mitm wrote:
               | There is a difference between a weakness and complete
               | breakage. You might have a small edge over brute force,
               | but not enough to reverse any public key. This acts like
               | a canary for weaknesses.
        
               | dylan604 wrote:
               | some people just want the cred though. their name will be
               | immortal and live through history as being something, or
               | some such nonsense that feeds an ego.
               | 
               | also, if you were the type that thinks bitcoin is lame,
               | this could be a way of undermining the concept to the
               | point that people no longer use it because it's not
               | secure as it was touted
        
               | throwawaymaths wrote:
               | What you would do is claim the prize slightly ahead of
               | schedule and wait to be slightly ahead of schedule for
               | the next one.
        
           | ramon156 wrote:
           | I'd assume there's a hint, but I can't find anything
        
           | jsheard wrote:
           | PoW crypto is an exercise in finding new ways to spin boiling
           | the oceans as actually being productive.
        
             | teekert wrote:
             | Electricity net controllers here are pretty happy when I
             | boil some ocean on a sunny day. In fact at times they give
             | me money for it. And then I can donate sats to indie
             | content creators using podcasting 2.0 features.
             | 
             | But I think you are one of those people that threw out that
             | baby with the bath water long ago.
        
               | kelnos wrote:
               | The kind of use you describe is almost certainly a small
               | minority of the whole.
        
               | yosito wrote:
               | Where is here for you?
        
           | PaulHoule wrote:
           | A lot of puzzles (e.g. sudoku) are things you could solve
           | with a SAT/SMT solver
        
           | aeternum wrote:
           | Optimization and efficiency are sometimes underappreciated
           | puzzles. We know that the air contains nitrogen for example
           | but without the wild efficiency of the Haber process, most of
           | us would likely be dead right now.
           | 
           | Custom silicon and all kinds of related optimizations were
           | likely used to successfully brute-force this number.
        
         | Sandworm5639 wrote:
         | Is it known who set it up and for what purpose?
        
         | n2d4 wrote:
         | For those curious, the reason why a public key lets you find a
         | private key more efficiently is Pollard's rho algorithm:
         | https://en.wikipedia.org/wiki/Pollard%27s_rho_algorithm_for_...
        
           | CamperBob2 wrote:
           | These keys are based on elliptic curves rather than products
           | of primes, aren't they?
        
             | matthewdgreen wrote:
             | There is one rho algorithm for discrete logarithms and one
             | for factoring. Published three years apart.
        
             | mrb wrote:
             | Yes, specifically secp256k1
        
         | mapt wrote:
         | Am I correct in assuming that beyond a certain point, this is
         | basically an existence proof for somebody having a quantum-
         | supreme solution to Shor's Algorithm?
         | 
         | "Here's $400,000 sitting on the table, hope nobody takes it"
         | which triggers an alarm telling us to replace all our old
         | prequantum cryptography.
        
           | n2d4 wrote:
           | Or someone "just" finding a fault in the cryptographic
           | algorithms used in Bitcoin. Or whoever created the puzzles
           | leaking their information.
        
             | sigmoid10 wrote:
             | >Or whoever created the puzzles leaking their information.
             | 
             | Or getting hacked. This is super common among people who
             | are known to have high value wallets. Between physical
             | attacks and zero days in everyday software, there's no
             | chance to stay safe when you put that kind of target on
             | your back.
        
               | owl57 wrote:
               | Is it likely that these particular private keys were
               | wiped ~immediately after creation?
        
               | Powdering7082 wrote:
               | > there's no chance to stay safe when you put that kind
               | of target on your back.
               | 
               | Vitalik Buterin seems to be a counter example here, his
               | net worth peaked around $1.46 billion. He has some
               | interesting writing on how he stays secure. At one point
               | the SHIBA token sent a huge amount of funds to his cold
               | wallet and he details what he did to securely access
               | those funds:
               | 
               | https://decrypt.co/91000/ethereum-founder-vitalik-
               | buterin-du...
               | 
               | > The funds, he said, were initially in a cold wallet in
               | the form of two numbers written on separate pieces of
               | paper. Buterin said he had to combine the two numbers to
               | get the private key. "One of those numbers was with me;
               | the other number was with my family in Canada," he said.
               | "So I had to call up my family in Canada and tell them to
               | read their number to me."
               | 
               | > Buterin said that he entered the numbers into the
               | computer he purchased from Target after putting the two
               | numbers together. "I sent my ETH out by generating a
               | transaction and then on a computer that I bought from
               | Tarjay [Target] for about $300 bucks for just this
               | purpose."
               | 
               | > Before disconnecting the laptop from the internet
               | entirely, Buterin said he downloaded a program to
               | generate QR codes. After generating the Ethereum
               | transaction, he scanned the QR code with his phone,
               | copied it to the laptop, and then put it into
               | etherscan.io/push Tx. Finally, Buterin said he began
               | sending out the tokens.
        
               | LikesPwsh wrote:
               | Vitalik got indirectly pwned by the infamous DAO smart
               | contract hack, but had the social clout to pause/rollback
               | the supposedly decentralised/immutable Blockchain.
               | 
               | Maybe not the best example of cryptographic security.
        
               | pas wrote:
               | how would anything ever be immutable if people can
               | reassign the symbol/pointer/name?
               | 
               | the DAO hack happened, immutably, no one disputes it. the
               | hashes and blocks and transactions are well-known. so
               | there was a "schism", that explicitly validates the fact
               | that without this large-scale cooperation, without the
               | redefinition of what Ethereum is, it would be still be
               | what is on that other branch. these both provide evidence
               | for the immutably and decentralization.
        
               | vessenes wrote:
               | This is not an accurate summary of what happened with
               | TheDAO. Source: I publicized the attack vector for TheDAO
               | here on HN.
        
               | TacticalCoder wrote:
               | > ... but had the social clout to pause/rollback the
               | supposedly decentralised/immutable Blockchain
               | 
               | Vitalik (and all DAO ETH hodlers) _luckboxed_ in that the
               | ETHs locked in the DAO, although  "stolen", couldn't be
               | withdrawn by the attacker before a few weeks.
               | 
               | There has been _zero_ pause and _zero_ rollback. Most
               | people don 't understand that: by chance the stolen funds
               | were inaccessible to the attacker for a few weeks.
               | 
               | What Vitalik did is he _forked_ (soft fork) the ETH
               | blockchain to modify the rules. That soft fork happened
               | _before_ the cooldown period expired, so the attacker
               | never got to access his funds.
               | 
               | Some members of the community said "adding new rules is
               | against the spirit of decentralization, so we keep using
               | the old chain". The old chain was named "Ethereum
               | classic" while the forked chain kept the name "Ethereum".
               | 
               | But there's been _no_ rollback.
        
               | mistrial9 wrote:
               | Target stores were early adopters of every-shopper
               | profiling. Target has cameras on the purchase area, and
               | have been known to refuse cash.
        
               | Scoundreller wrote:
               | Is this basically saying he sent all the ETH out of his
               | "account" (presumably to another one that was pre-
               | generated & pre-shared half the private key with his
               | family), so that it just had the Shiba tokens left in it?
               | 
               | Then he didn't have to worry about the Shiba related
               | transactions affecting his ETH?
        
           | Maken wrote:
           | If anyone developed a solution to integer factorization, I'm
           | sure they would be after larger prices than mere 400k in
           | crypto. A practical application of this puzzle could be to
           | have an estimation of how long it takes to break a public key
           | by conventional means. The moment one of these prices can be
           | claimed in mere months you know it's time to double the size
           | of the Bitcoin public keys.
        
             | mapt wrote:
             | If you want to prove that somebody has the ability to pick
             | locks in order to protect your valuables, you leave the
             | prize sitting on the kitchen table (at 66 bits of entropy)
             | behind your relatively easy front door lock, not in a
             | secure vault with triple redundant mechanisms. Somebody
             | with the solution is going to be able to claim the money in
             | far, far less computing time than they could claim a larger
             | prize by breaking industry standard prequantum key sizes.
             | 
             | The $400,000 is an inducement for any participant in that
             | engineering effort to break the conspiracy and take the
             | bag. It's effective during the period between the time that
             | a quantum Shor's solver has been achieved for a given
             | algorithm in theory for 256 bits (and in practice for 66
             | bits), and the time that a practical solution at 256 bits
             | has been implemented.
        
               | oniony wrote:
               | Except your analogy doesn't work because every single
               | bitcoin address has the same brand of lock.
        
               | beepbooptheory wrote:
               | Each key is a brand in the analogy.
        
               | anothernewdude wrote:
               | Except they don't need to take it now, just before anyone
               | else does.
        
           | red_admiral wrote:
           | Or some other number-theoretic advance that is significantly
           | below exponential time on the particular type of field or
           | curve being used.
           | 
           | The reason that we use elliptic curves these days, or if we
           | must then something like 8k bit keys to get 128 bits of
           | security over finite fields, is that for the old Z^*_q/Z_p
           | setup, such a faster algorithm exists (index calculus).
           | 
           | Someone could in theory find a better calculus that works
           | only for groups with some specific characteristics of
           | Curve25519, for example. No quantum computers needed.
           | 
           | EDIT: we know that no _generic_ faster algorithm exists, that
           | is one independent of the representation of the group
           | involved, for the traditional computing model. But that
           | doesn't exclude algorithms, as I said above, that work for
           | very particular cases.
        
         | red_admiral wrote:
         | Curious to know because I've never looked into this stuff:
         | doesn't the _public_ key have to be available anyway so you can
         | send the coins to the address in the first place and have that
         | recorded on the ledger?
        
           | tomtomtom777 wrote:
           | A wallet address (where money is sent to) is the public key
           | _hashed_. This money can than be spent with a transaction
           | containing both the signature and the public key.
           | 
           | This is one of the reasons it is advised never to reuse an
           | address. After using it once, your private key may still be
           | private but your public key is exposed, reducing security.
        
             | red_admiral wrote:
             | Thanks. The "hashed" part is what I was missing.
        
           | aeonik wrote:
           | Once you have the private key, you would submit a transaction
           | with that private key and authorize a transaction to a public
           | key that you control, and doesn't have part of the private
           | key available.
           | 
           | You don't need the public key, and IIRC most algorithms allow
           | you to derive the public key from the private key, though I'm
           | not sure that's the case with Bitcoin. I have vague memories
           | that there are algorithms where this is not that case, but
           | it's been a while.
        
             | red_admiral wrote:
             | It's some kind of EC/DSA scheme, isn't it? Then from the
             | private key you can indeed get the public key.
        
               | mistrial9 wrote:
               | Is this true? from an ECDSA private key you could derive
               | many possible public keys? asking for a friend
        
               | aeonik wrote:
               | I looked it up.
               | 
               | 1. SHA-256: Used twice (double SHA-256) for block hashing
               | and once in address generation.
               | 
               | 2. RIPEMD-160: Used once in address generation (after
               | SHA-256).
               | 
               | 3. ECDSA: Used once for transaction signing and
               | verification.
               | 
               | 4. Base58Check: Used once for address encoding (includes
               | a checksum generated using SHA-256).
        
       | rboyd wrote:
       | probably discussed in the bitcointalk thread, but how do we know
       | it's not just the creator of the puzzle reclaiming his own
       | bitcoin?
        
         | altairprime wrote:
         | By what means might you prove or disprove this theory?
        
           | stonegray wrote:
           | Having the the solver post all 2^66 -2 incorrect private keys
           | would prove that they solved it fairly and had no prior
           | knowledge of the key.
           | 
           | You'd just need to download the 6,505,548 TB list of keys and
           | re-derive the public key for each to check that they're
           | valid; unfortunately it would take in the ballpark of a
           | kiloyear of compute time assuming you have 3x RTX 3090s.
        
       | totallyunknown wrote:
       | This is just sick.
        
         | whiterknight wrote:
         | Why?
        
           | amelius wrote:
           | Can't we come up with puzzles where at least something of
           | value is created when the puzzle is solved (and a tremendous
           | amount of resources is not wasted)?
        
             | CaptainOfCoit wrote:
             | > puzzles where at least something of value is created when
             | the puzzle is solved
             | 
             | What puzzles create something of value when they're solved
             | today? A puzzle is typically a thing you do for fun and
             | entertainment, not something you try to solve for the
             | purpose of creating value.
             | 
             | I guess you're thinking more about logic/mathematical
             | puzzles and alike? Would make sense in that case, but
             | that's not the only type of puzzle.
        
             | commodoreboxer wrote:
             | We can and do, all the time. And all puzzles are a "waste
             | of resources", really.
             | 
             | I'm not into crypto and I do think Bitcoin is stupid and
             | wasteful, but I don't find it "sick" or all what upsetting
             | that this kind of puzzle exists, though I think some smart
             | contract-based Ethereum puzzles could be much more
             | interesting, demanding solutions to more interesting
             | problems that don't directly relate to the blockchain
             | itself. Imagine a smart contract with a pot anybody can pay
             | into that pays out to whoever could crack a particular
             | previously unsolvable problem. Basically a public bounty.
             | The only downside is that it has to be a problem that can
             | be validated algorithmically.
        
               | wruza wrote:
               | Puzzles are training and intellectual entertainment,
               | something you cannot have a web server without, cause sad
               | nerds are unproductive.
        
               | kelnos wrote:
               | This isn't really a puzzle, though. A puzzle requires
               | intellectual curiosity and creativity to solve.
               | 
               | This was just a race to see who could burn the most
               | CPU/GPU cycles the fastest.
               | 
               | Even when a real puzzle has a monetary reward for solving
               | it, a big component of the reward is the solving itself.
               | For this, the reward is just money.
        
             | erulabs wrote:
             | The use of the word "we" is curious. You didn't come up
             | with the puzzle, you didn't "waste" the resources. The
             | purpose of the we is to appoint yourself judge and arbiter
             | and to steal yourself into the in-group. Just post your
             | judgement: you don't like that _someone else_ did something
             | you don't like with _their resources_.
        
               | amelius wrote:
               | That sounds like an ad-hominem attack to avoid the
               | question, tbh.
        
               | erulabs wrote:
               | At the risk of sounding snarky: It wasn't. It does
               | however, answer the question. "We" do not need to change
               | our allocation strategy whatsoever because "we" didn't
               | allocate any resources towards this and "we" aren't the
               | arbiter of what others can or cannot do with _their_
               | resources.
        
               | amelius wrote:
               | "We" as in "us humans".
        
             | timacles wrote:
             | Pretty sure all puzzles are a tremendous waste of time and
             | create no value.
        
             | fluoridation wrote:
             | That wouldn't be a puzzle, then. It would some kind of
             | engineering challenge. A puzzle starts by knowing the
             | answer and then putting some circuitous path between it and
             | the player, that they have to figure out how to navigate.
             | It's inherently wasteful to construct puzzles.
        
               | amelius wrote:
               | Unless the people solving the puzzles learn something
               | valuable on the way.
               | 
               | Anyway, I don't agree that puzzles by definition have
               | known answers, unless you want to nitpick and I just
               | change my "puzzle" into "challenge".
        
             | samatman wrote:
             | The sibling comments are all correct that you're special-
             | pleading the criterion that a puzzle create something of
             | value.
             | 
             | But, as it happens, this one does: it offers economic
             | incentive to develop more efficient attacks on elliptic
             | curves. The curve Bitcoin uses isn't widely used outside of
             | it, but that doesn't mean that an efficient attack on
             | Secp256k1 wouldn't apply elsewhere.
             | 
             | Is this modest as positive externalities go? Probably yes.
             | Could someone with a better attack on the curve just empty
             | wallets? Not necessarily, and probably not: the point of
             | the puzzle is that the entropy has been deliberately
             | reduced to make it crackable with brute force, so, say
             | someone worked out a factor of four improvement: that isn't
             | going to get you into the Genesis Wallet, but it
             | substantially lowers the price of claiming some of the
             | puzzles.
             | 
             | Also, being a cryptographer and being a thief are unrelated
             | professions. Some people might be inclined to both, but I
             | would guess that most are not.
        
             | wruza wrote:
             | Why should "we"? You can hear "we should/must" from all
             | corners here but then remember it's an US start-up'ers
             | forum with people who plan morning meetings for email
             | regexps.
             | 
             | Bitcoin may be an inefficiency, but is it the? Most
             | everyday things modern first-world people do are equivalent
             | to burning oil and shredding trees for little to no reason.
             | You just can't see it as clearly as in PoW crypto.
        
       | gizmo385 wrote:
       | Is there something unique or special about the private keys that
       | are guessed? This seems like an incredibly wasteful allocation of
       | compute (which wouldn't be surprising given that it's bitcoin but
       | still)
        
         | p4bl0 wrote:
         | I had the same reaction. Isn't Bitcoin wasting enough energy as
         | it is?
        
           | sammy2255 wrote:
           | What if it's 100% green energy? Is it a waste?
        
             | LadyCailin wrote:
             | Given that green energy is currently finite, and shortfalls
             | are (generally) made up for by non-green energy, yes.
        
             | adastra22 wrote:
             | Yes, there are opportunity costs.
        
             | chx wrote:
             | Of course. It's still energy produced which could be used
             | for something that is not a scam; that is not just funding
             | North Korea with extra steps.
        
             | danogentili wrote:
             | It's even more of a waste.
        
             | Byxxi wrote:
             | I would argue that it's still a waste, because that energy
             | could be put to an otherwise better use. Now that energy
             | has to be replaced by a non-green counterpart since it's
             | been spent.
        
               | throwawaymaths wrote:
               | What if you're using that energy in your hot tub, or to
               | heat your house during the winter?
        
               | Byxxi wrote:
               | Are you arguing staying alive through winter as something
               | less beneficial to bitcoin mining?
        
               | fecal_henge wrote:
               | Depends if they are wintering inside or in the hot tub.
        
               | thinkmassive wrote:
               | If electricity is being used to generate heat (for a
               | house, hot tub, etc), and that heat happens to be
               | generated by a bitcoin miner, is it more or less wasteful
               | than only using the electricity to generate heat?
        
               | BenjiWiebe wrote:
               | That's fine, provided you weren't going to heat it with a
               | heat pump before you decided to use a Bitcoin miner. I
               | suppose there's also a slight environmental cost in
               | producing a Bitcoin miner vs producing a heating coil but
               | I'm going to assume that's negligible.
        
               | Mountain_Skies wrote:
               | Since energy isn't easily transported, wouldn't that
               | really depend on where the energy was produced?
        
               | qwertox wrote:
               | I'd argue that no other thing, apart from information, is
               | transported as easily as electricity, once the grid
               | exists. Sure, there are capacity limits, but I doubt that
               | shutting down crypto mining would cause problems to the
               | grid.
               | 
               | I recently read that some are thinking about connecting
               | the US with Europe via DC cabling.
               | 
               | Here's a related, old article: "Submarine power cable
               | between Europe and North America: A techno-economic
               | analysis" (2018)
               | 
               | * Developed a 2030 power dispatch model of Europe and
               | North America (NA).
               | 
               | * Identified socio-economic benefits of European-NA
               | electricity trading through a HVDC cable.
               | 
               | * A 4000 MW cable increases social welfare by 177 MEUR on
               | an annual basis.
               | 
               | * This benefit for society is sufficient to cover the
               | investment costs.
               | 
               | https://www.sciencedirect.com/science/article/pii/S095965
               | 261...
        
               | grues-dinner wrote:
               | I did not expect the the energy would flow so heavily
               | _to_ North America (24.1:3.3 TWh ratio over a year).
        
               | keyringlight wrote:
               | And adding green energy to the grid would let you
               | displace/turn off non-green generation if the load wasn't
               | increasing (as much).
        
             | jgalt212 wrote:
             | It's all one energy market however. It's a bit a of rough
             | approximation, but green energy wasted on unnecessary
             | purposes is green energy not used for necessary things.
        
             | dodoisdodo wrote:
             | You still have to pay infrastructure deprecation costs,
             | financing costs and labor costs.
        
             | monkeyfun wrote:
             | There may not be a continuous fuel expenditure, but there
             | is a maintenance cost for the grid infrastructure, keeping
             | panels or turbines in good working condition, etc. -- not
             | to mention the manufacturing costs and, since no
             | organizations are currently engaged in microwave power
             | transmission from solar-power satellites in space -- not
             | insignificant associated monetary and opportunity costs to
             | the land used.
             | 
             | Conclusion: yes, it's still a waste, unless that energy was
             | surplus absolutely not going to be used for anything better
             | or able to be stored, although even then the compute
             | resources could have probably been used for more useful
             | problems.
        
             | TZubiri wrote:
             | Not unless everyone is using green energy.
             | 
             | California uses green energy, but in doing so increases the
             | mining reward, which increases the mining from countries
             | like china and russia, who do not use green energy.
        
             | qwertox wrote:
             | Probably. The energy could have been available to any
             | energy intensive industry, helping them if the resource is
             | too scarce and eventually lowering production prices if it
             | wasn't scarce. You notice it in Germany where energy has
             | become very costly in the last couple of years, where it
             | then makes more sense to limit production or even close all
             | together.
        
               | ericd wrote:
               | My impression is that transmission capacity is often the
               | limiting factor, so you can't really think of eg solar
               | energy as being fully fungible. At least in the US, there
               | are frequently multi-year delays on solar deployments
               | because the transmission capacity to where it could be
               | reasonably used isn't there. The interconnection queue is
               | extremely long in many places.
               | 
               | As something that's eminently portable, I think crypto
               | mining might actually have a use in derisking building
               | out solar deployments, as a sort of buyer of last resort.
               | 
               | It might be nice to have other very portable energy sinks
               | to eat up temporarily cheap locally available
               | electricity. I think this might be part of the dream of
               | the hydrogen proponents.
        
             | nephanth wrote:
             | Yes? If the energy could be used for something productive,
             | but is instead used for something unproductive, then it is
             | a waste
             | 
             | While that energy technically serves the purpose of letting
             | a monetary system function, traditional monetary
             | infrastructure requires vastly smaller amounts of energy,
             | thus this is a wasteful use of it
        
               | Jach wrote:
               | Last time I did some numbers, bank of america spent
               | around $1bn per year in cybersecurity alone, and bitcoin
               | mining energy cost about 10x that. For ensuring the
               | security of a trustless worldwide monetary system, it's
               | not that bad in comparison.
        
             | Ekaros wrote:
             | Only in very limited scenarios. Namely when there is excess
             | production and it is used near production of that green
             | energy. And the green energy is not dispatchable. So wind
             | or solar in times of excess production.
             | 
             | Which as a whole is very limited scenario.
        
             | jwr wrote:
             | > What if it's 100% green energy?
             | 
             | It is very much not: https://www.theguardian.com/technology
             | /2022/feb/18/bitcoin-m...
        
         | kobalsky wrote:
         | controlled arms race to improve things on both sides and it
         | doubles as a canary.
        
           | LegionMammal978 wrote:
           | If someone had totally broken the hash in secret, I doubt
           | they'd burn it on such a low-stakes canary.
        
       | gosub100 wrote:
       | somewhat-related:
       | https://en.wikipedia.org/wiki/RSA_Factoring_Challenge
        
       | cj wrote:
       | Interesting: Reading the first page of the bitcointalk forum, the
       | puzzle originated from this wallet, which has an incredible
       | amount of volume going through it. 10,000+ transactions and over
       | a million BTC sent/received.
       | 
       | https://www.blockchain.com/explorer/addresses/btc/173ujrhEVG...
        
       | ivanjermakov wrote:
       | Who is paying to the puzzle solvers?
        
         | horacemorace wrote:
         | Everyone who trades fiat for crypto.
        
         | doctorwhat wrote:
         | Three letters agencies? Could be a nice way to find out if a
         | foreign entity has an enormous brute-force capability? But more
         | likely I'd say they got their bitcoin back when a core2duo was
         | enough to generate a few of them overnight...
        
           | cmcaleer wrote:
           | Prize pool would have to be much more than $400k to justify a
           | state actor flexing that kind of capability, NK makes far
           | more than that exploiting crypto protocols.
        
         | PcChip wrote:
         | The btc has been in the wallet since the puzzle was created
        
       | Dwedit wrote:
       | Do they have a buyer for that $400k? If not, it's not worth
       | $400K.
        
         | Powdering7082 wrote:
         | 24h Volume: $9,800,480,342
         | 
         | Liquidity of less than a million worth of BTC hasn't been a
         | problem for a long time
        
         | somebodythere wrote:
         | The market is liquid enough to absorb a sale for $400K.
        
         | thfuran wrote:
         | Bitcoin is more than liquid enough to offload a half dozen
         | without issue.
        
         | FileSorter wrote:
         | One of the most profoundly dumb comments I have read here.
         | 
         | It takes 3 seconds to look up the 24h volume for BTC and it is
         | $9.6 Billion
        
           | jakobov wrote:
           | Dont be mean
        
           | latchkey wrote:
           | No matter how dumb it is, in general, it is always better to
           | just respond with the answer and not comment on the comment
           | itself.
           | 
           | https://news.ycombinator.com/newsguidelines.html
           | 
           | "Be kind. Don't be snarky. Converse curiously; don't cross-
           | examine. Edit out swipes."
        
           | TrackerFF wrote:
           | Might sound dumb, but there are still places in the world
           | where having $400k worth of BTC != $400k in the bank.
           | 
           | Plenty of banks will freeze your bank account instantly.
           | 
           | And good luck convincing them that you stumbled upon $400k by
           | solving a puzzle - only takes one suspicious fraud/risk
           | manager to conclude that there's a higher chance of fraud
           | than legitimacy.
           | 
           | (But you are right, no problem to find someone to pay you the
           | market price. That's a done deal in seconds)
        
             | kolinko wrote:
             | Examples of such places? I did KYC/AML with multiple
             | European banks when withdrawing crypto, and while they
             | checked thoroughly, there were never any issues.
        
               | TrackerFF wrote:
               | From personal experience, a bunch of Norwegian banks.
               | I've had transactions that are equivalent to $5k trigger
               | such events. And you get grilled.
        
             | xboxnolifes wrote:
             | You don't need to sell it all at once.
        
         | outofpaper wrote:
         | The current market easily eats up 6.6 BTC without much
         | movement. Are you looking at a smaller pool like Canada
         | exclusively. Look at the Euro or USD markets. They are much
         | much deeper.
        
         | umanwizard wrote:
         | 1. Create Coinbase account
         | 
         | 2. Deposit bitcoin
         | 
         | 3. Market order sell all
         | 
         | 4. Withdraw USD
        
           | CaptainOfCoit wrote:
           | Step 2.5 Argue with Coinbase about if you're a legitimate
           | owner or not
           | 
           | Step 2.6 Coinbase blocks your account citing "Suspicious
           | activity"
           | 
           | Step 2.7 Sign up to three other exchanges, split the loot
           | across them
           | 
           | Step 5 Argue with the bank about the source of funds
           | 
           | Step 6 Argue with tax agency that you'll fill out your taxes
           | correctly
        
             | umanwizard wrote:
             | Even if this is true (and I suspect it's exaggerated), I'd
             | be happy to go through this trivial amount of hassle for
             | $400K.
        
             | red_admiral wrote:
             | For something like $10k-20k I bet you could get someone
             | (good lawyer?) to solve those problems for you, leaving you
             | with $399-398k. Worth the deal, I think.
        
               | Biganon wrote:
               | The math doesn't check out
        
             | kolinko wrote:
             | Kraken would cause no problems for 2.5-2.7
             | 
             | Taxing this is super simple, you just mark as "other" -
             | akin to finding money on the ground.
             | 
             | Arguing with bank - which specific bank would cause
             | problems here?
        
         | londons_explore wrote:
         | 400k I think is no problem. I heard of someone with 10,000 BTC
         | having some serious trouble finding a buyer though.
        
           | adastra22 wrote:
           | That's 5% of the daily trade volume. Shouldn't be an issue.
        
             | londons_explore wrote:
             | Except trade in bitcoin is fee-free and mostly regulation-
             | free, so there is a lot of wash trading.
        
       | odyssey7 wrote:
       | What category of taxable income would this be in the US?
        
         | bornfreddy wrote:
         | Asking for a friend?
        
         | greyface- wrote:
         | 1040 Schedule 1 Line 8(z) "Other income"
         | 
         | IANAL, etc.
        
         | jncfhnb wrote:
         | Losses due to theft
        
       | arcanemachiner wrote:
       | Looks like the coins were stolen by a bot:
       | 
       | > https://bitcointalk.org/index.php?topic=1306983.msg64535839#...
       | 
       | I'm not super familiar with the concept (and I'm too lazy to look
       | into it TBH), but I think the would-be winner posted the private
       | key before enough (any?) blocks were mined, and the thief posted
       | a transaction with a bigger fee, and the thief's transaction was
       | in the block that got mined.
        
         | kneel wrote:
         | That's not how bitcoin works
        
           | ffsm8 wrote:
           | Feel free to click on the link.
        
           | dartos wrote:
           | That's exactly how bitcoins works.
           | 
           | As a miner, if I see two conflicting transactions I will
           | prioritize the one which pays more rather than the one I saw
           | first.
        
         | dools wrote:
         | So someone stole the prize and left some sort of calling card
         | mocking everyone solving bitcoin puzzles?
         | 
         | 1Jvv4yWkE9MhbuwGU66666666669sugEF 0.00000001
         | 1YouAreSoDumbLoL666666666667K5aR4 0.00000002
         | 1WhatWereUThinking6666666662wkqq1 0.00000003
         | 1YouDeserveNothing6666666665sbbBC 0.00000004
         | 1YouEpicFaiLure66666666666688GSDA 0.00000005
         | 1BitchAssLoser66666666666669dBUVg 0.00000006
         | 1AndEveryoneELse666666666669Vnc8C 0.00000007
         | 1ThisisALosingGame6666666667HAZdf 0.00000008
         | 1JustGetAReaLJob666666666665vGKVD 0.00000009
         | 1YoureWastingTimeAndMoney664CVExC 0.00000010
         | 1AndCausingCLimateChange6666HK8Qc 0.00000011
         | 13zb1hQbWVsc2S7ZTZnP2G4undNNpdh5so 0.00000012
         | 1Jvv4yWkE9MhbuwGUoqFYzDjRVQHaLWuJd 0.00000013
         | 1FK5PjPNARQmg94n2cNHTo9417kWfXUDBQ 0.00002125
        
           | lmz wrote:
           | That one is sending money to the address, not taking money
           | from it.
        
         | GistNoesis wrote:
         | >posted the private key before
         | 
         | When you post a transaction, the public key is in the
         | transaction (inside the field "sigscript") . With the public
         | key known you only need 2^(66/2) checks (instead of 2^66),
         | which can be done really fast.
         | 
         | So some bot watched the address, obtained the public key,
         | computed the private key from it, and front-ran the original
         | submitter probably with a deal from a mining pool to make sure
         | his transaction is enforced.
        
           | TacticalCoder wrote:
           | > When you post a transaction, the public key is in the
           | transaction (inside the field "sigscript")
           | 
           | Is that true for every single Bitcoin transaction?
           | 
           | > With the public key known you only need 2^(66/2) checks
           | (instead of 2^66), which can be done really fast.
           | 
           | Then how comes not _all_ Bitcoin transactions are front-ran
           | like that and Bitcoin is not worth zero already? 2^33 is
           | indeed nothing: 8 billion (so I understand this can be easily
           | cracked).
        
             | GistNoesis wrote:
             | >Is that true for every single Bitcoin transaction
             | 
             | I think so, for outgoing transaction (aka to remove from
             | the address), it's kind of needed to verify the signature.
             | 
             | The 2^66 is only for this game where only 66 bits were left
             | unknown. In the general case obtaining the private key from
             | the public key is much longer.
        
               | TacticalCoder wrote:
               | Ah gotcha, that's what I missed. Thanks for your
               | explanation. For a regular address, even with the public
               | key, if there are 256 unknown bits it'd be 2^128, which
               | is statistically unlikely to be solvable.
        
           | ChrisClark wrote:
           | Edit: I see it's because I'm this instance there was less
           | entropy, I guess a normal transaction has a lot more bits to
           | guess
           | 
           | Why doesn't this happen with every large transaction then?
           | Someone tries to move 10 BTC, instantly stolen?
           | 
           | Basically you're saying that every single Bitcoin transaction
           | can be stolen "really fast".
           | 
           | Am I missing a step here?
        
             | Stagnant wrote:
             | It is based on the fact that the upper range limit of the
             | private key used in the puzzle is known. A securely
             | generated private key would not be vulnerable even if its
             | public key is known.
             | 
             | The second post on this thread[0] has a helpful chart that
             | makes it easier to understand.
             | 
             | 0: https://bitcointalk.org/index.php?topic=5218972.0
        
         | mrb wrote:
         | No private key was posted too early. What happened is the
         | person who spent all the computing power to brute force the 66
         | bits broadcasted, naively, a transaction to send the 6.6 BTC
         | reward to his wallet. However, when doing so, the public key is
         | by design revealed on the blockchain. Someone's bot whose sole
         | purpose is to steal this puzzles rewards was monitoring the
         | blockchain and spotted the transaction before it got confirmed
         | (on average confirmations occur every 10 minutes), then it
         | processed the now known public key from which the private key
         | can be recovered in 2^33 operations (2^(n/2)), then crafted
         | another transaction to send the reward to his wallet, with a
         | higher fee, so his transaction got confirmed, instead of the
         | discoverer's lower-fee transaction.
         | 
         | This is a well-known attack. The discoverer was sophisticated
         | enough to brute force, but not enough to know about this risk
         | :)
        
           | motoxpro wrote:
           | As much as this sucks, I absolutely love how the blockchain
           | is real life version of a Dark Forest
        
           | Terr_ wrote:
           | I feel like this is another useful example to have handy
           | against the canard: "You're only skeptical of
           | cryptocurrencies/blockchain because you haven't learned
           | enough about how they work."
           | 
           | I think the correlation is the other way around, at least
           | once you get past some very early local maxima of "people who
           | don't understand how money can be in a computer."
           | 
           | P.S.: To digress (rant) a bit: The linchpin is whether your
           | system needs to allow anybody creating any number of new
           | participants nodes at any time. That core requirement is
           | actually _very rare_ , and it's the root for a cascading tree
           | of workarounds and compromises and inefficiencies. (Mining,
           | proof of work/stake, clearing times, transaction fees, etc.)
        
           | fernandopj wrote:
           | But how could he have avoided this attack? I'm only familiar
           | with Bitcoin's blockchain on a begginner level. But I assume
           | the only way would be to avoid revealing the answer key
           | (public) when sending the transaction to get the reward?
        
             | drexlspivey wrote:
             | One way would be to not broadcast the transaction publicly
             | but send it to a mining pool directly
        
             | hoerzu wrote:
             | Private mempool transaction
        
             | Jerrrrrrry wrote:
             | There is actually no way to avoid this, aside from setting
             | the Fee nearly to the reward.
             | 
             | It's essentially MitM all the way down.
             | 
             | even the private mempool can attempt a double-spend with a
             | larger fee, get one transaction ahead, then try to maintain
             | an edge long enough to be the "longest branch" for
             | consensus - the 51% attack only needs 33% in reality, much
             | less when your the private mempool that can take advantage
             | of the birthday paradox to jump two blocks ahead.
             | 
             | you have to literally mine your own coin with the reward
             | transaction included.
             | 
             | of course, zpk+ would solve this issue entirely.
             | 
             | Alice and Bob wouldn't ever doubt each other again.
        
           | thrtythreeforty wrote:
           | What is the less-naive way to claim this type of puzzle?
        
           | Stagnant wrote:
           | That is correct. Basically you have to get lucky that after
           | submitting the transaction a new block would be confirmed
           | within 1-2 minutes which I think is around the timeframe what
           | it will take for a top consumer GPU to bruteforce the private
           | key.
           | 
           | I'd be curious to know if it is possible at all to "securely"
           | send the funds of these puzzles or if there is some hard
           | limit that requires the pubkey to be published with the
           | transaction.
        
           | Dibby053 wrote:
           | That must hurt. In case I crack the next puzzle... how should
           | I go about collecting the prize without having to mine a
           | block myself or trust a miner not to screw me over?
        
       | thundergolfer wrote:
       | We had fraudsters using modal.com compute to solve this
       | challenge. It's not traditional mining software so it didn't
       | initially get flagged, but we've updated our detection to catch
       | it now[1].
       | 
       | 1. https://modal.com/blog/catching-cryptominers
        
         | ggrelet wrote:
         | Just here to say I think modal is really cool. Keep up the good
         | work!
        
       | iJohnDoe wrote:
       | Can someone EILI5?
       | 
       | I thought cracking anything to steal bitcoin was impossible due
       | to the keys sizes involved? Is this possible because a portion of
       | the key is already available so there is less to crack?
       | 
       | Which key is known? The public or private? Another comment said
       | the "now known public" but then also said the private key can now
       | be recovered by cracking it? Two keys need to be cracked?
       | 
       | What kind computing power is needed to crack both keys and how
       | long?
       | 
       | Thanks. Sorry, I'm an idiot when it comes to bitcoin.
        
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