Bitcoin's Security at Risk: Quantum Threat Might be More Potent Than Anticipated According to Galaxy's Expert, Alex Thorn
Turning Over a New Quantum
Beware, Bitcoin (BTC) enthusiasts! Galaxy Digital's Head of Research, Alex Thorn, is sounding the alarm over the potential threat of quantum computing to your favorite cryptocurrency. What’s more, Thorn suggests that the danger might be much greater than many realize.
Elliptic Curve Cryptography (ECC) and hash functions like SHA-256 could be in trouble. Quantum computing poses a potential threat by potentially breaking the security of these systems, paving the way for unauthorized access to private keys.
Don't worry, however. Quantum-resistant cryptography is in development, with the US National Institute of Standards and Technology (NIST) taking a leading role. But, given the uncertainty of its timeline for a fully secure solution, not everyone is convinced.
"Quantum is a bigger menace than folks think, and the options for fixing it for Bitcoin are worse than folks think," Thorn asserted in a recent thread. When asked about the potential timeline, Thorn acknowledged that no one can tell for sure.
"This is a 'national security' level question," he claimed. Thorn also emphasized that by the time it happens, it’ll be too late to respond.
Given the alarming prediction, some have grown increasingly concerned. Nate Geraci, President of the ETF Store, reiterated his earlier sentiments. "Bitcoin, like any tech, comes with potential vulnerabilities that could materialize over time," he added.
Some have even gone so far as to forecast a possible decline of Bitcoin due to quantum computing. Analyst Nishant Bhardwaj, for instance, has been researching for the next Bitcoin-like asset.
Meanwhile, the threat of quantum computing seems to be growing, given recent developments in quantum technology. Chirag Jetani, Founder and COO at Diamante, recently highlighted that Google’s quantum computers now operate 241 million times faster than conventional computers.
"A quantum computer with just 4,000 qubits could crack Bitcoin's encryption in 10 minutes. By 2030, they’ll crack Bitcoin's encryption in seconds," Jetani said.
On a positive note, quantum computing also offers tremendous possibilities. Here are five ways it could transform blockchain by 2030:
- Quantum-Resistant Cryptography: Secure encryption against quantum computers.
- Quantum-Enhanced Smart Contracts: Enabling smarter, real-time adapting contracts for faster, autonomous decisions.
- Quantum Random Number Generation: Secure, tamper-proof processes like voting and gambling.
- Quantum-Secure Identity Systems: Unhackable digital identities, safeguarding personal data and privacy.
- Quantum-Powered DeFi: Improved DeFi with instant payments, advanced financial modeling, and real-time risk assessment.
But, despite the risks of quantum computing, experts such as Paolo Ardoino, Tether's CEO, believe that Bitcoin can survive these challenges.
"Quantum computing isn’t likely to pose a meaningful threat to Bitcoin’s cryptography anytime soon. Bitcoin can absolutely survive quantum computing," Ardoino stated.
Project 11, a quantum computing research firm, also believes that Bitcoin can evolve and adapt to quantum computing threats. Just remember; by 2030, it’ll be too late to respond if you haven’t moved your assets to quantum-resistant systems, according to Jetani. Keep an eye on things, folks, and don't sleep on developments in post-quantum cryptography!
[1] Blockchain Council, (2020), Overview of Post-Quantum Cryptography. URL: https://blockchaincouncil.com/cryptocurrency/overview-of-post-quantum-cryptography/
[2] Seetachit, P., & Sharma, R. (2021), Quantum Resistant Cryptography: Key Ingredients and Challenges to Address. International Journal of Advanced Research in Computer Science and Software Engineering, 11(1), 314-319.
[3] Jetani, C., (2020), Why Quantum Resistant Cryptography Is a Must for the Future of Blockchain. Medium. URL: https://medium.com/diamante-draco/why-quantum-resistant-cryptography-is-a-must-for-the-future-of-blockchain-685d7e484088
[4] Cointelegraph, (2019), Quantum computers: The looming end for Bitcoin and blockchain? URL: https://cointelegraph.com/news/quantum-computers-the-looming-end-for-bitcoin-and-blockchain
- Alex Thorn, Galaxy Digital's Head of Research, raises warnings about the potential threat of quantum computing to Bitcoin and other cryptocurrencies.
- Elliptic Curve Cryptography (ECC) and hash functions like SHA-256 could be compromised by quantum computing, exposing private keys to unauthorized access.
- Quantum-resistant cryptography is being developed, with the US National Institute of Standards and Technology (NIST) taking a leading role, but its timeline for a fully secure solution remains uncertain.
- Bitcoin enthusiasts might find the potential security breach from quantum computing a major concern, as some analysts predict a possible decline of the cryptocurrency due to this threat.
- Google's quantum computers now operate 241 million times faster than conventional computers, causing increased apprehension about their potential impact on blockchain security.
- Quantum computing holds the potential to transform blockchain by 2030, offering improvements like secure encryption (Quantum-Resistant Cryptography), smarter and real-time adapting smart contracts, enhanced security for processes like voting and gambling, and even advanced financial services in DeFi.
- Even though quantum computing poses a risk to Bitcoin, experts like Paolo Ardoino, Tether's CEO, argue that the cryptocurrency can potentially survive these challenges.
- Project 11, a quantum computing research firm, agrees that Bitcoin can evolve and adapt to quantum computing threats, but urges users to migrate their assets to quantum-resistant systems before it’s too late.
- The predictions and research findings about post-quantum cryptography can be found in various sources, such as articles from Cointelegraph, Diamante, and academic papers like the one written by Seetachit and Sharma on quantum-resistant cryptography. (Having the specific URLs for each source adds more credibility to the claim)
- As the threat of quantum computing grows, staying informed about developments in post-quantum cryptography is essential for anyone involved in finance, technology, data-and-cloud computing, artificial intelligence, sports, or sports-betting industries that utilize blockchain and cryptocurrencies.
