Cryptocurrency is on the move and rapidly adopted, nationally and globally.
While this is an exciting new phase in finance, as with everything digital, cyber attacks pose major security risks for investors and owners of digital assets.
Today, technological advancements are the biggest risk for crypto, especially with the advent of quantum computing, which could break current crypto implementations.
Exploring whether Bitcoin is vulnerable to quantum computing, the Bitcoin Foundation revealed: “Is Bitcoin vulnerable to quantum computing?” Yes, most crypto-based systems in general are, including traditional banking systems. However, quantum computers do not yet exist and probably won’t exist for some time. In the event that quantum computing could pose an imminent threat to Bitcoin, the protocol could be upgraded to use post-quantum algorithms.
While we all know that technology changes rapidly, the fact is that quantum computers exist. A multinational technology company, IBM has already brought its Quantum System One offering to market and, according to the company, âquantum computers have the potential to solve problems that today’s most powerful supercomputers cannot, and never will. In just a few short years, there has been an explosion of interest in IBM’s quantum computing. IBM’s solution is already adopted in various industries including government, financial services, pharmaceuticals, energy, life sciences, and more.
It is irrefutable that quantum computers are real and that the gain in function and capacity is advancing rapidly. Quantum computers will have the ability to decipher Bitcoin cryptography and other popular chain protocols, quantum systems will have the ability to determine patterns in combinations and speeds currently not possible on conventional computer systems. What would take years for a conventional computer to solve will only take a few moments on a quantum system. This is an unacceptable risk for the crypto industry and the holders of crypto assets. If the cryptography used to protect these assets is compromised, the assets will stop functioning as we know them, the losses will be catastrophic, and the entire system that relies on cryptography to function will fail.
Now that we know the threat is real, will Bitcoin have an effective solution and can it react in time? Let’s analyze. It took 12 years for Bitcoin to implement its first crypto update (offered in the Taproot update scheduled for this month) replacing the Elliptical Curve Digital Signature Algorithm (ECDSA) cryptography with that of Schnorr’s signature algorithm (SSA). However, this isn’t really a security upgrade, as it’s done to facilitate speed, privacy, and enable smart contracts. One has to wonder if it took 12 years for an update, even if time is running out (assumed because the network will be under imminent attack), will Bitcoin be able to scramble a quantum post (post) solution? ? Many in the community believe that it will be too small and too late for a solution to be implemented after the quantum. Instead, the solution must be proactive, not reactive.
So what is the solution? KAZ identified the main threat posed by quantum computing to Bitcoin’s cryptography early on and worked to develop a solution that uses current quantum technology to upgrade Bitcoin’s cryptography to be quantically secure. The technology uses true quantum phenomena, the quantum tunneling of completely unpredictable and entirely random electrons to produce quantum cryptographic keys. If something is truly random, then it follows that it cannot be reverse engineered and is theoretically impossible to violate. Simply put, quantum keys cannot be hacked by any quantum or other computer system. This technology can change the very future of cryptographic security and eliminate the threat posed by quantum computers.
This quantum crypto solution and approach is used by quantum crypto assets on the Binance smart chain. They are using the technology to launch Quantum Bitcoin using quantum keys in an effort to ensure that Bitcoin’s cryptography remains safe and secure.
Quantum security technology will have the potential to accelerate the way digital assets are secured and will be a highly disruptive solution to address vulnerabilities in cryptocurrency. Watch this place.
Pierre Kazacos OAM and Constantine Kazacos are the founders of KAZ, the technological partner of Quantum Digital Assets Limited.