The concept of quantum computing refers to the use of quantum mechanical phenomena in a way that deals with both entangled and superposed states. In simple terms, it uses quantum mechanics, the branch of physics that examines the behavior of matter and energy at both atomic and subatomic levels.
Unlike standard computers, which use bits, quantum computers utilize qubits that can exist in superpositions of both 0 and 1 simultaneously. This means that these devices will have the opportunity to explore several different possibilities at the same time, solving complex problems much faster and having the ability to focus on hyperspecific tasks.
This development sounds incredible for everyone who’s interested in tech development and innovation, since it is naturally a step forward in that regard, but not all industries are thrilled by its introduction. The blockchain and crypto worlds in particular have been struggling with the concept of quantum computing as it could potentially destabilise the marketplace and even break the ecosystem’s entire cryptography. If you’re a crypto trader then you’re most likely concerned with things such as learning how to buy Bitcoin during times when the prices start going on a downswing, or learning how to interpret the latest data and figures from technical analysis, but with the tech landscape changing and evolving you might soon need to branch out in different directions as well.
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An overview
According to some crypto experts, the industry is not paying close enough attention to the existential threat quantum computing poses to the well-being of the crypto environment. The professionals involved in designing and launching quantum-resilient systems for decentralised platforms have issued warnings that the foundations of well-known blockchains such as Bitcoin and Ethereum are actually quite outdated, which could leave them vulnerable to attacks.
Although cryptocurrency spaces are known for their innovation and continuous growth, the fundamentals of their systems are actually not doing well, and in that regard, they are not significantly different from the standard, centralized systems that crypto was meant to be a tech-forward alternative to. But quantum computing is inevitable, so not being prepared for it can be a serious problem in the long run. Many developers say that there is still plenty of time left to adapt, but others seem to believe that it might already be too late for substantial changes. Quantum-resistant signatures are underway, but they are not treated with the urgency that the threat seems to demand.
The current issues
One of the main reasons why the issue of quantum computing isn’t taken more seriously is that most believe that the technology is still years away and that fretting over its impact won’t do anyone any good. In fact, the idea that quantum computers could harm the blockchain environment felt like science fiction for many years. However, it seems that to consider it nothing more than a theory was a naïve belief, and it is now time for the crypto world to catch up. Although cryptocurrencies exist in a decentralised environment, they are not at all immune to the effects of the changes taking place around them.
In fact, they might actually be more vulnerable. This can be easily seen when it comes to price fluctuations and volatility. As David Princay, President of Binance.com France, said, “Macroeconomic factors have increased market uncertainty… Bitcoin was less affected by ‘risk-off’ episodes than other crypto assets.” But it’s not just the price point that must be taken into consideration. Governments and large tech corporations have already begun preparing for “harvest now, decrypt later”. This concept refers to a surveillance strategy that relies on long-term storage of encrypted data that is entirely unreadable at the moment, so that it can become accessible at some point in the future.
The key concern here is that quantum computing will eventually crack the current encryption algorithms and make it possible to decrypt the stored material. Any other cyber attack capable of enabling this type of decryption would be more than enough as well. Some US federal agencies have been talking about the risks since 2022, and while today’s quantum technology cannot crack BTC’s hash function or the Elliptic Curve Digital Signature algorithm that safeguards the integrity of crypto keys, there’s no way to tell when the technology will evolve enough to make that possible. The change will most likely be very abrupt as well, meaning that the blockchains will have no time to prepare.
Artificial intelligence
The rise of AI is another technological development that has got people talking over the last few years. Similar to quantum computing, it has a lot of potential for both improvement and massive disruptions. When it comes to quantum threats, most think about brute-force attacks on cryptographic keys, but some researchers think that the most pressing danger lies in the mix of quantum computing and artificial intelligence. Together, they could launch asymmetric attacks that don’t overwhelm the systems with disproportionate power, but instead dismantle them with laser precision and accuracy.
The most likely scenario in this sense is that funds will just keep being moved from wallets, and there will be no way to prove who did it or the means they used. AI is already widely used in the cybersecurity landscape, where it helps detect intruders right away. However, since these tools are so powerful, it also means they could be used for different purposes by those who want to achieve more malicious goals. If artificial intelligence is paired with quantum computing, which is capable of dismantling elliptic-curve keys, the result would be a catastrophic breach that analysts refer to as a “silent collapse”.
Several AI-based tests have detected vulnerabilities in cryptography that traditional tools can’t notice, so it is time for the systems to start evolving. Quantum computing could also exploit the blind spots of the BTC infrastructure, such as the centralised areas, trust assumptions, and aging technology.
To sum up, while the marketplace and its users are safe at the moment, it helps to think about the future as well. When things change, there won’t be a warning, which is why it is better to start working on the defenses as soon as possible.
