What is quantum processing?
Imagine a computer that processes information extremely quickly, far faster and smarter than today’s devices. Classical computers use bits, small switches that can be set to 0 or 1, to process data. Quantum processing goes a step further with special bits called qubits.
Unlike ordinary bits, qubits can be both 0 and 1 at the same time thanks to a phenomenon known as superposition. It’s like tossing a coin that is both a head and a letter at the same time until you stop it. In addition, qubits can be connected to each other via entanglement, where the state of one qubit instantly affects the other, regardless of distance.
These phenomena allow qubits to process a multitude of possibilities in parallel, making quantum computers incredibly fast tools for solving complex problems. However, these advances in computing also bring challenges, especially in the context of cryptography that preserves the security of cryptocurrencies.
Source: cointelegraph
How does quantum computing threaten cryptocurrencies?
The power of quantum processing enables computers to perform tasks that were previously impossible or required impractically long periods of time. These advances could jeopardize the cryptography that ensures the security of cryptocurrencies. While ordinary computers don’t have enough processing power to crack the algorithms that protect crypto, quantum computers could theoretically crack them in just a few seconds.
Cryptocurrencies depend on public and private keys for transactions on the blockchain. Currently, it is impossible to calculate the private key based on the public key. But quantum processing, with its ability to solve discrete logarithms and factorize integers, could overcome this challenge.
If this encryption could be broken, it would allow access to private keys and allow those with quantum computers to steal from crypto wallets. This would make the entire cryptocurrency industry lose its value.
Moreover, the very foundation of blockchain technology would be called into question, which opens up a broader discussion about the conflict between blockchain and quantum processing.
Source: cointelegraph
The Impact of Quantum Computing on Blockchain
Blockchain technology represents a major step forward in network security through a distributed ledger system. Blockchain works thanks to the power of multiple (hundreds or thousands) of computers, without a single point of vulnerability. To attack it, it is necessary to control 51% of the network’s processing power — which is almost impossible on the largest blockchains like Bitcoin, unless a quantum computer is used to breach security, take control and modify blocks and transaction history.
This scenario would further upset the balance of power distribution within the grid. In addition, quantum computers could more easily solve consensus mechanisms, such as proof-of-work (PoW), which are used to verify and mine new blockchain blocks. As a final blow, the security of smart contracts — key elements of blockchain technology — would also be compromised.
The combination of these threats shows that quantum processing is not only a technical challenge but also a threat to the foundations of decentralized systems.
Source: cointelegraph
Cryptographic Challenge
Quantum processing may not mark the end of blockchain technology, after all. The hash functions used in blockchain for encryption, data integrity, and security demonstrate greater resilience to quantum computers.
Hash functions use mathematical algorithms to convert a variable number of characters into a fixed number of characters. It’s like putting data — such as passwords — into a “mixer” that produces a unique output, known as a hash.
Hash functions are thought to be resistant to quantum computers because they do not use the same mathematical problems that quantum computers can solve, such as factorization of prime numbers. However, theories like Grover’s algorithm suggest that even hash functions could be compromised.
Interestingly, IBM has developed quantum-secure cryptographic algorithms, such as ML-KEM, ML-DSA, and SLH-DSA, to strengthen cybersecurity against the power of quantum processing. This is a step forward in keeping us safe in the face of new challenges.
Source: cointelegraph
The Future of Cryptocurrencies in the World of Quantum Computers
Genuine cryptocurrencies could be under serious threat if they do not adapt their encryption methods. For example, quantum computers and Bitcoin pose a potentially big problem; some predictions suggest that a quantum computer could hack Bitcoin in as little as 30 minutes. This is worrying given the fact that Bitcoin carries a value of more than $1 trillion. Similar concerns apply to the future of quantum computing and Ethereum.
To survive in the world of quantum computers, cryptocurrencies will have to adapt and implement quantum-resistant cryptography. The future of blockchain will depend on the community’s ability to respond to the challenges posed by quantum technology.
Source: cointelegraph
The race to develop quantum-resilient blockchains
While it is still unclear exactly how quantum processing will affect cryptocurrencies, the threats it poses should not be underestimated. Currently, quantum technology is still in development, and estimates of when it will be ready for widespread use range between 2030 and 2050. years. This provides cryptocurrencies with much-needed time to adjust their security protocols.
The industry is already investing increasing resources in the development of quantum-resistant technologies and research into quantum processing in the context of cryptocurrencies. But this threat doesn’t just apply to cryptocurrencies — even banks and governments, which depend on traditional encryption methods, are at risk.
The race has begun, both between quantum computing and decentralized finance (DeFi), as well as between quantum computers and traditional financial systems. The key to success lies in the speed of development of quantum-resistant solutions.
It will certainly be interesting to see what the future holds, and who will find their way in it the most. We hope that you enjoyed reading today’s blog, and that you learned something new and useful. If you have any questions or suggestions, you can always contact us on our social networks (Twitter, Instagram).
