Will the rise of Quantum Computing be a threat to Bitcoin? – Bitcoin (BTC/USD)

When Bitcoin BTC/USD introduced a peer-to-peer (P2P) lending system in 2009, facilitated by its original token, the world was in awe – and suspicious – of the benefits of a decentralized financial system.

More than a decade later, BTC has not only emerged as the world’s largest cryptocurrency by market capitalization, but has also spurred the adoption of blockchain technology across multiple industries. It has also spawned a number of applications, such as decentralized finance (DeFi), that are revolutionizing the way people do business.

Nevertheless, with the emergence of a new breed of quantum computersthe dominance of blockchain-powered protocols such as Bitcoin may be challenged in the near future.

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What is Quantum Computing?

While traditional computers use bits to process and store information by switching between 0 and 1, quantum computers use qubits that can simultaneously exist in both states.

These computers can be millions of times faster than the best supercomputers today.

With this kind of data supremacy, malicious entities can take advantage of quantum computing to launch attacks on protocols like Bitcoin, in an attempt to steal funds from the millions of cryptocurrency users transacting via the internet today.

Using storage attacks or transit attacks, bad actors can attack vulnerable wallet addresses or even target transactions.

At the same time, they are processed on the blockchain. Storage attacks are apparently a bigger possibility since it depends on how securely tokens are held by different users, while transit attacks are beyond the realm of many quantum computers that exist today.

Supremacy under attack?

Currently, Bitcoin and other blockchain protocols are not particularly vulnerable to quantum data attacks. That’s because quantum computers haven’t progressed beyond 100 qubits in terms of processing capacity. This limits the possibility of an attack on a protocol as large and secure as that of Bitcoin.

But technology is developing at a rapid pace, and quantum computers with more than a million qubits could become a reality within the next decade.

With that kind of computing power, the Bitcoin network in its current form would be severely compromised by cybercriminals.

See also: Broken record? JPMorgan CEO continues to rage about Bitcoin, calls it a ‘Ponzi scheme’

Projects that prevent future quantum data attacks

There are a number of projects working on refining or introducing new architectures that will make the protocols even more secure.

In fact, blockchain technology is constantly evolving as developers and entrepreneurs strive to innovate.

Moving away from elliptic curve cryptography (ECC), which focuses on a set of public and private keys to encrypt data, will be one of the most immediate tasks for crypto developers.

A number of projects recognize the need for more robust and attack-proof solutions, and are exploring alternative cryptographic methods to secure the next generation of Bitcoin and other protocols.

Some notable examples of quantum-resistant technologies include:

• The block grid method adopted by the QAN platform
• Directed acyclic graph (DAG) technology seen in the Iota blockchain
• And quantum key distribution (QKD), developed by Toshiba TOSYY and JPMorgan Chase & Co. JPM

Each of these methods has adopted different approaches to ensure that their respective networks can withstand quantum data attacks.

But the key message remains: the crypto developer community would be wise to prepare for any risks posed by quantum computing.