Quantum computers are developing at a fast pace and could soon be used to crack the digital wallets used in cryptocurrencies such as Bitcoin and Ethereum. They rely on cryptographic technology to ensure that cryptocurrency transactions are processed without the interference of any central authority. It has been suggested that quantum computers are a “existential threat” for the cryptographic technology used to power this new cryptocurrency financial revolution.
Express.co.uk’s Chairman, David Williams, co-founder and chief executive officer of Arqit said that quantum computing poses a threat to the blockchain technology.
We have seen numerous hacks in the crypto space including the $600 million Poly Network attack. This will get even worse as quantum computers with their enormous power can easily break cryptographic security to protect crypto wallets, exchanges, and other critical infrastructures.
This threat should be taken seriously by crypto foundations and companies as well as those involved in blockchain projects. They must also seek out ways to improve their security systems.
The cryptocurrency ecosystem will need to improve its security in order to withstand hackers equipped with quantum computers.
These hackers can also take down global financial institutions, central banks, and other entities that issue fiat currencies for the world economy. They also depend on cryptographic security.
Williams thinks that information is being extracted today to enable future encryption and that it is likely that a universal quantum computing computer will be available in five years.
He said: “But, what is really important? Companies like PsiQuantum or IBM have made enormous strides in error correction this year meaning that the required number of quantum circuits (or qubits) has fallen from millions to thousands.”
This isn’t blue-sky development and research, but it is good product engineering that shows the industry is on its way to an endpoint.
“There is so much investment in this technology that there are many companies. What academics thought was feasible with small university budgets and timescales, no longer applies.
There is also the possibility that other countries or companies could be operating in “dark mode” and may have advanced much faster than what the public knows.
The blockchain industry can’t afford to remain complacent.
It has taken some time for cryptocurrency to be prepared for quantum threats such as post-quantum algorithmic ideas.
These key sizes, however, Williams claims will lead to “far too big and can significantly slow down blockchains.”
He said, “This is something Charles Hoskinson has admitted to being a co-founder and founder of Ethereum as well as the creator of Cardano.”
Arqit was founded by Mr Williams and has been working to develop a system of encryption so that every transaction can be encrypted in a way that is unbreakable.
Williams claimed that the Arqit new method of creating “symmetric encryption keys at scale and endpoints” is the best solution, as they’re just random numbers.
This is because there is no mathematics a quantum computer cannot break and Arqit, a unique system in the world, is much more efficient (1.400 times faster), at making blockchains safe.
This news follows China’s announcement in 2020 that it has achieved quantum supremacy through the creation of a photon-powered quantum computer.
Jiuzhang, a Chinese computer that was created by Chao-Yang Lu, is known for solving mathematical problems in less than a second. It is faster than Japan’s Fugaku which took 600 million years.
China is a hostile country to Bitcoin and Ethereum, as well decentralised finance currencies. If their quantum computers become more advanced, they could undermine encryption that stores transactions in the blockchain ledgers.
Quantum computing can also be used to expose private communications and company information, as well as military secrets, and erase digital bank records.
Quantum computing may make use of the bizarre effects of quantum mechanics such as superposition or entanglement to accelerate certain problems such as hacking encrypted communication in seconds.
Classic computers would need to work for millions of years in order to solve the same encrypted passwords.
Because of the superposition effects, one quantum bit (or qubit) can simultaneously be 1 and 0.
This is in contrast to the classical bit of computing which only allows for one state: 1 or 0.
This computing revolution may also be able to take advantage of Entanglement, which is another benefit that the quantum world offers.
Publited Sat, 14 August 2021 at 13:11:49 (+10000).