Is Quantum Computing a Threat for Cryptocurrencies?
As transistors keep getting smaller, the next evolutionary jump is expected to come with Quantum computing. Late last year, Google achieved quantum supremacy by building a quantum computer and solving previously unsolvable mathematical equations.
So, what is quantum computing? Current computers function by manipulating individual bits, which can either be a 0 or 1. However, quantum computers change that with qbits. They go way further, as they can store more than just 0 and 1.
So theoretically, a quantum computer could crack a blockchain algorithm. It could crack Bitcoin’s encryption in a matter of seconds, rendering it useless. Quantum Computing could threaten not just cryptocurrencies, but the way the internet works as most encryption standards would be rendered useless.
However, we are far away from any of these doomsday scenarios. Building a quantum computer is incredibly hard, and very often, they are built for a single purpose. Think of it as an ASIC. An ASIC to mine Bitcoin is not ideal for mining Ethereum. So someone would have to spend millions of dollars and go through the painstaking process of building a quantum computer that is specifically capable of breaking Bitcoin.
Also, Quantum Computing is nowhere close to cracking any encryption yet. Quantum Supremacy, claimed by Google is still a very rudimentary quantum computer. With multi-billion dollar corporations and even government stepping in, it is only a matter of time when we get better results. However, that is still decades away.
For now, the risks of quantum computing is over-stated. Researchers are already working on Quantum-Resistant blockchains and other encryption standards that cannot be broken by quantum computing. When it is ready, Bitcoin could just fork itself to implement the new algorithm.
Published at Wed, 29 Jan 2020 09:47:36 +0000
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