Skip to content

Quantum Computing And The Risk Posed To Bitcoin

when Bitcoin BTC/USD-0.72% launched a peer-to-peer (P2P) lending system in 2009 facilitated by its native token, the world was awe-inspired — and suspicious — over the deserves of a decentralized monetary system.

Greater than a decade later, BTC has not solely emerged because the world’s largest cryptocurrency by market capitalization however has additionally spurred the adoption of blockchain expertise throughout a number of industries. It has additionally spawned quite a lot of functions, reminiscent of decentralized finance (DeFi), that are revolutionizing the best way people transact.

But, with the rise of a brand new breed of quantum computer systems, the dominance of blockchain-powered protocols like that of Bitcoin might be challenged within the close to future.

What Is Quantum Computing?

Whereas conventional computer systems use bits to course of and retailer data by switching between 0 and 1, quantum computer systems use qubits that may concurrently exist in each states.

These computer systems will be tens of millions of occasions sooner than one of the best supercomputers in the present day.

With this type of computing supremacy, malicious entities might exploit the benefits of quantum computing to launch assaults on protocols like Bitcoin, in an try and steal funds from the tens of millions of cryptocurrency customers that transact through the web in the present day.

By using storage assaults or transit assaults, dangerous actors might assault susceptible pockets addresses and even goal transactions.

On the identical time, they’re being processed on the blockchain. Storage assaults are seemingly an even bigger chance since it’s depending on how securely tokens are being held by numerous customers, whereas transit assaults are past the realm of a present lot of quantum computer systems in existence in the present day.

Supremacy Underneath Assault?

At present, Bitcoin and different blockchain protocols aren’t notably inclined to quantum computing assaults. That is as a result of quantum computer systems have not progressed past 100 qubits when it comes to processing capability. This limits the potential for an assault on a protocol as massive and safe as that of Bitcoin.

However expertise is progressing at a speedy tempo, and quantum computer systems with greater than 1,000,000 qubits might change into a actuality inside the subsequent decade.

With that type of computing energy, the Bitcoin community in its present kind can be severely compromised by cybercriminals.

Tasks Thwarting Future Quantum Computing Assaults

There are a variety of tasks which might be working to tweak or introduce new architectures that will make protocols much more safe.

Certainly, blockchain expertise is evolving repeatedly as builders and entrepreneurs attempt to innovate.

Shifting away from elliptic curve cryptography (ECC), which focuses on a set of private and non-private keys to encrypt information, shall be one of the quick duties at hand for crypto builders.

Recognizing the necessity for extra strong and attack-proof options, quite a lot of tasks are exploring alternate cryptographic strategies to safe the subsequent era of Bitcoin and different protocols.

Some notable examples of quantum-resistant applied sciences embrace:

  • The block-lattice methodology as adopted by the QAN Platform
  • Directed acyclic graph (DAG) expertise as seen within the Iota blockchain
  • And quantum key distribution (QKD), developed by Toshiba TOSYY and JPMorgan Chase & Co. JPM-2.17%

Every of those strategies has adopted totally different approaches to make sure that their respective networks can resist quantum computing assaults.

However the important thing message stays: the crypto developer group can be sensible to arrange for any dangers posed by quantum computing.

__________

This text was initially revealed on Benzinga and seems right here with permission.

Leave a Reply

Your email address will not be published. Required fields are marked *