Suppose you were asked to rank the most significant innovations in IT over the last few years. What would come to your mind?
It is very likely that both blockchain and quantum technologies would come close to the top of your list.
Blockchains promise the secure exchange of digital assets (such as money, contracts, tokens…) using peer-to-peer networks, with no need for trusted intermediaries. They rely on cryptography to generate, protect and exchange these assets. Many believe that this will be a revolution in the way we conduct business over the Internet and much more.
Quantum technologies offer a change of paradigm in the way we process information. Quantum computers will provide a tremendous increase in computing power. They will be able to crack problems, deemed unsolvable with classical computers. Quantum networks will improve the security of transactions. And our imagination is still lacking to discover applications for the future quantum Internet.
Quantum computers will destroy some of cryptographic principles behind blockchain.
On the other hand, the very power of the quantum computer represents a threat to existing cybersecurity infrastructure. In particular, the quantum computer will destroy some of the cryptographic principles behind the blockchain. Can Blockchains like Bitcoin, Ethereum, Hyperledger Fabric, and Zcash survive the quantum computer? What do we have to modify to recover security? Can we possibly use quantum technologies to improve the Blockchain? These are some of the questions, which we address in the new paper: “Blockchains in the Quantum Era”.
This paper was written by the Quantum-Safe Security working group, in collaboration with the Blockchain working group of the CSA. We hope that it will help you get a clearer understanding of the interaction between two of the most interesting recent innovations in IT.
Interested in contributing to future research projects? Learn more about the Quantum-Safe Security Working Group or the Blockchain/DLT Working Group.
FAQs
Currently, the cryptographic algorithms used in blockchain, such as RSA and ECC, are vulnerable to attacks from quantum computers. This means that the security of your precious blockchain data could be compromised in a quantum computing era.
Can quantum computers break the blockchain? ›
Conclusion - Blockchain is only at Risk if it does not adapt
While the potential for quantum computing to disrupt traditional cryptographic systems is undeniable, proactive measures and crypto-agile infrastructure can mitigate these risks and ensure the resilience of blockchain networks in the face of emerging threats.
What is the quantum threat to the blockchain? ›
The Bitcoin blockchain uses powerful cryptography to ensure its decentralized money transfer model remains trustless, private and secure during peer-to-peer transactions. However, quantum computers may attack it by deploying machines and algorithms powerful enough to break its cryptographic shields.
Can quantum computing break Ethereum? ›
Buterin explained that quantum computers could crack an Ethereum account and reveal the private key by using the public key alone. As Buterin explained, the only Ethereum accounts safe from a quantum attack would be wallets that have never completed a transaction, as they wouldn't have exposed their public key.
Is quantum computing the end of crypto? ›
Quantum computer might be a threat to crypto-currencies. Some cryptogtaphic algorithms are known to be vulnerable to Quantum computers and some others currently have no know attacks with Quantum computers. For example, sha256 cannot be computed (or inverted) fast enough by a quantum computer to make Bitcoin useless.
Which blockchain is quantum resistant? ›
Quantum Resistant Ledger (QRL)
It uses XMSS, a hash-based digital signature scheme. QRL's approach is unique as it was one of the first cryptocurrencies to implement quantum-resistant technology from the ground up.
How long would it take a quantum computer to crack 256-bit encryption? ›
A 256-bit encryption is considered to be highly secure and it would take classical computers millions of years to crack it. However, quantum computers could potentially crack this level of encryption in mere seconds or minutes.
How vulnerable is Bitcoin to quantum computing? ›
Quantum computers could one day use Shor's algorithm to break ECC, exposing Bitcoin transactions to potential security breaches. This vulnerability extends particularly to legacy addresses, which include a significant portion of Bitcoin's founder, Satoshi Nakamoto's holdings.
Will quantum computing destroy cryptography? ›
quantum computers have the potential to break some of the cryptographic algorithms that are currently used in Bitcoin and other cryptocurrencies. These algorithms, such as the Elliptic Curve Digital Signature Algorithm (ECDSA), are used to secure transactions and protect the integrity of the blockchain.
What is the quantum risk of Bitcoin? ›
Specifically, a quantum computer with around 100,000 qubits could potentially break the cryptographic algorithms underpinning cryptocurrencies using Shor's algorithm. Here's an in-depth look at why this is the case and what it could mean for the future of digital currencies.
Backing a currency is done by the currency's issuer to ensure its value. Bitcoin, gold, and fiat currencies are not backed by any other asset. Bitcoin has value despite no backing because it has properties of sound money.
Is sha256 quantum proof? ›
While a 256-bit hash is still considered secure against classical attacks, it is theoretically as secure as a 128-bit hash against quantum attacks.
Is quantum computing a risk? ›
Planning for quantum computing risk
Quantum computers will be able to break common encryption methods at an alarming speed. Encryption tools currently used to protect everything from banking and retail transactions to business data, documents and digital signatures can be rendered ineffective – fast.
Will quantum computers crack blockchain? ›
In today's technology landscape, the blockchain promises unbreakable data security, but that will all be undone as soon as quantum computers come on the scene. Blockchain security is based on mathematical puzzles that are incredibly difficult for even the best conventional computers to crack.
Will blockchain be replaced by quantum computing? ›
Quantum computing, with its ability to process data at the speed of light, could help solve this problem by making the blockchain faster without sacrificing security. AI could use the secure environment of the blockchain to operate, with quantum computing speeding up both processes.
Could a quantum computer mine Bitcoin? ›
Current quantum computers can maintain their quantum states only for a fraction of a second, which is insufficient for solving the complex cryptographic puzzles involved in Bitcoin mining.
Will quantum computers be able to break encryption? ›
Researchers typically estimate that it will be many years until quantum computers can crack cryptographic keys—the strings of characters used in an encryption algorithm to protect data—faster than ordinary computers.
Could quantum computers mine Bitcoin? ›
Quantum computers are super powerful and can tackle complex calculations, but using them for Bitcoin mining is a bit tricky. While they can crunch numbers insanely fast, Bitcoin's mining algorithm requires specific types of calculations that quantum computers aren't necessarily better at.
Is quantum cryptography Unbreakable? ›
However, quantum computers running Shor's algorithm will be able to break math-based systems in moments. Quantum cryptography, on the other hand, uses the principles of quantum mechanics to send secure messages, and unlike mathematical encryption, is truly un-hackable.
Can the Bitcoin blockchain be hacked? ›
The concepts behind blockchain technology make it nearly impossible to hack into a blockchain. However, weaknesses outside of the blockchain create opportunities for thieves. Hackers can gain access to cryptocurrency owners' cryptocurrency wallets, exchange accounts, or the exchanges themselves.
