What are quantum computers?

Quantum computers may be better at cracking cryptographic passwords than conventional ones, posing a new cryptographic puzzle. Cryptocurrencies are safeguarded using public-key encryption, which is a kind of cryptography. 

Your communications are encrypted and your online transactions are protected thanks to this innovation, ensuring that only the intended recipient can read them. The mechanism works as follows: a public key that anybody can see is combined with a private key that only the owner can see. 

If development continues at this rate, quantum computing will be able to break public key encryption, posing an existential threat to the crypto sector. This will not only influence cryptocurrency trading but also currencies totaling hundreds of billions of dollars.

Quantum computing has grown exponentially and is continuing to grow. Venture capitalists are investing more money into technology, and public initiatives are exploring how it could change our society for the better.

While it is still in development, quantum computing has the potential to completely change the landscape of technology – especially when it comes to blockchain.

Blockchain technology is a relatively recent innovation that allows individuals to conduct peer-to-peer transactions without the need for a central authority. In place of depending on a central authority, blockchain technology creates a trust framework based on cryptographic algorithms’ properties.

As long as these algorithms are resistant to being hacked, activities that do not follow the rules, such as illegitimate cryptocurrency transactions, will be discarded. This incentive encourages actors to behave honestly. 

The assumption is that they are secure against powerful supercomputers now and into the future. Experts are already predicting the potential of quantum-equipped actors to steal huge quantities of cryptocurrencies using the power that quantum computing has to offer.

New technologies and complex algorithms have the potential to subvert conventional digital security techniques by employing two distinct sorts of assault: the storage attack and transit attack.

Are quantum computers viewed as a threat to cryptography?

Quantum computing is a different topic, and blockchain technology might seem difficult at first. Because quantum is simple to imagine, it has the potential to revolutionize everything. This isn’t completely correct, though.

Quantum computers will be able to solve issues a million times faster than today’s computers. Quantum computers work with qubits, which are materials that behave strangely according to their own odd physics.

For example, quantum computers will need thousands of qubits to decypher encryption – this number is much higher than the amount used by today’s devices. Furthermore, these machines will also require permanent qubits in order to carry out calculations for a lengthier period of time than what is possible now. 

The manufacturers of quantum computers are taking strides to correct these issues. For example, they are increasing the number of qubits in computers and developing quantum error correction methods to enable qubits to perform more complex and lengthier operations.

The good news is that this problem has been addressed in the past. And it’s highly unlikely that quantum computers will be able to break encryption immediately. Instead, we’ll have a heads-up long before then, according to computer experts. In addition, blockchain technology is also developing at the same time as quantum computing.

Post-quantum cryptography is currently being considered by some developers. This is the strengthening of encryption that quantum computers can’t crack, and experts believe they’ll be able to achieve success. However, one of blockchain’s most appealing characteristics is its near-impenetrable security.

At the very least, the risk of breaching such security is worrisome, and crypto investors should keep an eye on quantum developments. On a case-by-case basis, cryptocurrencies may need to update to post-quantum cryptography methods. It will be fascinating to see which digital currency enterprises are able to stay ahead of the curve.

Cryptocurrency investors will need to eventually move their assets into wallets that are more secure. According to Chainalysis, a data firm, 20% of Bitcoin is currently inaccessible or held in wallets people can’t move. Thus, these untransferable currencies may be susceptible to attacks.

If you want an easy transition, experts suggest storing your assets with a crypto exchange. But if you use a decentralized wallet, be extra careful–it’ll take more work.

In the near future, new technology and algorithms could create problems for digital security by compromising established practices. There are two types of attacks that could be used to do this: storage attacks and transit attacks.

Storage attacks

An attacker would target vulnerable addresses — those in which the wallet’s public key is stored on the blockchain — to steal money using so-called storage attacks.

A recent study revealed that 25 percent of all bitcoins in circulation and 65 percent of ether— the tokens in the Ethereum network — are stored in addresses with a published public key. This means they might be stolen by a quantum computer with enough resources.

Hundreds of billions of dollars worth of cryptocurrencies may be vulnerable to storage attacks. The computing power required to conduct these assaults is estimated at around 10 million qubits — a unit of measurement best understood as the equivalent to a standard bit in conventional computing.

The qubits we have available now number in the hundreds, but scientists believe quantum computers could reach 10 million or more in just 10-15 years.

Preventing these attacks means that fund owner should either steer clear of vulnerable addresses or move their money to an address where the public key hasn’t been published. Of course, this is easier said than done.

Transit attack

A transit attack happens when a malicious actor tries to redirect blockchain funds to their own address by taking control of the transaction while it’s in progress.

This type of attack degrades all transactions, not just those on the target network. However, executing it is more difficult because it must be completed before the transaction can be processed by miners. In typical circumstances, this leaves a gap of just tens of seconds for Ethereum and a few minutes for Bitcoin.

While an intensive attack of this sort could take billions of qubits, the risk it poses is lower than that of storage attacks  — though it’s still worth taking into account.

It is not simple to prevent transit assaults. It necessitates updating the blockchain’s underlying cryptographic signing method to one that is resistant to a quantum attack.

Mitigating threats

With these challenges in mind, we must decide whether to invest in limited changes to blockchain protocols. Despite the fact that this would require less intervention, it may not protect wallets from being hacked long-term.

Because of their decentralized nature, blockchain solutions necessitate a broad consensus to make modifications to the protocol. With so many unanswered questions about quantum computer development and the tremendous work needed to combat the various degrees of this hazard, lengthy debates might be ineffective.

We must take quick action to mitigate the risks if we want the quantum revolution to be free of such security concerns.

A more serious issue is that blockchains are based on hashing, a form of digital fingerprinting that quantum computers may be able to break. This, however, is sure to be addressed through minor technological improvements.

Bitcoin wallets, which users use to keep track of their digital possessions, may be vulnerable to quantum computing. These wallets hold users’ private keys to access their blockchain assets. If a successful attack were to occur, it could nullify the entire wallet.

The issue of scalability can be avoided by those with well-designed governance or post-quantum designs that were included from the start.

Regulators are often regarded as the most dangerous threat to cryptocurrencies, but other technologies may also be a problem. Other technologies that could render blockchain obsolete, such as Bitcoin 12 years ago, have already emerged.

Otherwise, cryptocurrencies will be destroyed by quantum computing, just as the withdraw cryptography method was. Cryptocurrencies are already struggling with a slew of issues, ranging from scalability to long-term viability.

However, owing to the scale of the danger, the sector must act swiftly to ensure that quantum computing does not jeopardize its security.

Conclusion on quantum computers

There are several websites that can connect you to thousands of coins all over the world. To choose the best one for you, consider which features are most important to you.

If you want to go the extra mile, check out some cryptocurrency and blockchain courses. These are designed not only to improve your understanding of the technology but also to provide you with a professional certification.

If you’re still not satisfied with your crypto knowledge, you can seek assistance from specialists. Many businesses have entered the space and provided expert solutions as well as training programs.