Quantum Threats To Cryptocurrencies Are Real, Researchers Warn

A new study by researchers has brought a critical, long-term threat to the forefront of the cryptocurrency conversation: quantum computing.

The research warns that the increasing power of quantum computers poses a significant risk to the security of cryptocurrencies, highlighting vulnerabilities to attack and the breaking of widely used cryptographic algorithms.

Vitalik Buterin, a co-founder and one of the key figures in the Blockchain tech, has also warned on the dangers thet quantum computing will pose to the cryptocurrency economy. Recently he noted that there is a 20% chance of quantum computers breaking modern cryptography before the end of 2030. 

Two primary threats pointed out

Different studies point to two primary threats, according to the reports.

• First, many cryptocurrencies, including Bitcoin and Ethereum, rely on a cryptographic process known as Elliptic Curve Digital Signature Algorithm (ECDSA). A sufficiently powerful quantum computer, using an algorithm known as Shor's algorithm, could theoretically break this encryption, allowing an attacker to generate a user's private key from their public address. While this threat is not imminent, it looms on the horizon as quantum technology continues to advance. 

• Second, the studies also warns that quantum computing could make 51% attacks easier to execute. A 51% attack occurs when a single entity or group controls a majority of a network's mining or staking power, giving them the ability to manipulate transactions and create double-spends. While this is computationally prohibitive for today's networks, a quantum computer's superior processing power could make such an attack more feasible.

A long term task that can not be avoided 

This research serves as a wake-up call for the industry to accelerate the development of "quantum-resistant" cryptography.

The solution involves transitioning to new, post-quantum cryptographic algorithms that can withstand a quantum attack. While major networks like Bitcoin and Ethereum are already researching these upgrades, the new study underscores the urgency of the matter. Failure to address this threat could compromise the long-term security and integrity of the entire cryptocurrency ecosystem.