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Quantum computing- The new big thing in the field of technology Now, just recently Google made its own headlines when it announced its latest quantum computing achievement called Willow, a leap forward in the field of quantum processors. Such has provoked widespread discussion regarding the future of cryptographic security in areas like digital currencies such as bitcoin and other cryptos, as well as many fields. Will quantum computers, when they come of age, jeopardize the cryptographic backbone that supports Bitcoin? Or is it still way too early to think about the quantum age impacting the world of cryptocurrency? In this blog post, we will discuss Google’s Willow breakthrough, what it could mean for Bitcoin security and the greater crypto ecosystem.
What is Quantum Computing and Why Does It Matter?
Before we get into just what makes Google’s Willow so significant to crypto, we need to understand the fundamentals of quantum computing. We most commonly represent information using bits known entities that are 0 or 1 in classical computations. The classical bits are processed by classical algorithms to carry out computations and tasks. In contrast, quantum computers use qubits (quantum bits), which can exist in a number of states at the same time due to the principles of quantum mechanics, namely superposition and entanglement.
And this ability to do lots of calculations simultaneously is what makes quantum computing, especially Google’s Willow, potentially many orders of magnitude more powerful than classical computing. Willow’s power is more than a million times greater than that of conventional supercomputers and there are some problems that even the most advanced of the old-world supercomputers would take millennia to complete that a quantum computer like Willow will take only a matter of seconds to solve. Some of those tasks, like factoring large numbers and simulating quantum systems, and breaking widely used encryption algorithms, is where the potential concern for Bitcoin and other cryptocurrencies come from. These capabilities could have major implications for the cryptographic foundations of digital currencies as Willow and other quantum breakthroughs advance.
Google’s Quantum Breakthrough: Willow
Google’s Willow is a next-generation quantum computing chip built to make quantum computations more reliable by correcting the errors that can occur because qubits are fragile. Though still early days for the chip, it marks a significant leap on the road to creating scalable quantum computers able to carry out increasingly complex calculations. Willow is part of Google’s long-term plan to improve quantum computing and demonstrates the company’s efforts to make quantum processors more efficient and stable.
At this point, the system Willow is still not able to crack the encryption that protects Bitcoin or other cryptocurrencies, but it significantly advances our understanding of how to create more advanced quantum systems. Quantum computing will be years away from threatening the security of Bitcoin or other cryptocurrencies, but Willow is one of the most concrete examples yet of how quantum technology could soon disrupt the current state of play in digital security.
Bitcoin and the Cryptographic Challenge
As the first and most widely used cryptocurrency, bitcoin uses cryptography to secure transactions, prove ownership and prevent fraud on the blockchain. These features describe the way Bitcoin (as a brand) protects itself, but fail to mention what actually makes Bitcoin secure: the Elliptic Curve Digital Signature Algorithm (ECDSA), which is used to sign transactions and prove ownership, and the SHA-256 hash function, which is used to secure the integrity of blocks.
Right now, Bitcoin’s cryptography is safe from traditional attacks carried out by classical computers. While the fact that factoring such large numbers is already a challenge and the signed elliptic curve – signature, makes it computationally unfeasible for legacy computers to crack Bitcoin address private keys. But, quantum computers work based on entirely different principles and they could undermine the cryptographic systems upon which Bitcoin is built.
Perhaps the most famous—certainly the most often quoted—algorithm that could be exploited by quantum computers is Shor’s Algorithm. Although, Shor’s Algorithm pairs well with quantum computers and can factor large numbers exponentially faster than classical computers. Specifically for Bitcoin from above, a sufficiently powerful quantum computer can in theory derive a Bitcoin wallet’s private key from its public key by factoring the elliptic curve which is used in ECDSA algorithm. If a bad actor gets that private key, they could potentially steal the Bitcoins which are on that wallet.
Quantum computers could threaten the SHA-256 hash function used to secure Bitcoin’s blockchain, too. SHA-256 is deemed secure against classical computers, but theoretically, an adversary with a sufficiently powerful quantum computer could use Grover’s Algorithm to find a hash collision in the hash function much faster, softening its security.
How Far Are We from the Quantum Threat?
Be that as it may, despite the promise of quantum computing to break the bases of Bitcoin’s cryptography, we are nowhere near that point. While Google’s Willow is a welcome advancement, quantum computers remain faraday cages away from being able to break Bitcoin’s encryption. Willow is among the current crop of quantum computers, which have a small number of qubits, and most of which struggle with quantum decoherence error, limiting their scale of computation capabilities.
It will be many, many years — if not decades — before quantum computers will have the raw power necessary to crack the encryption algorithms on which Bitcoin relies, experts say. The technology has significant technical hurdles to overcome, including error correction and qubit stability, as well as scaling the technology to a point where it could run complex tasks such as factoring large numbers at a speed that could make Bitcoin’s security vulnerable.
Furthermore, the cryptography community has long been aware of this problem and is currently researching post-quantum cryptography. The latest cryptography, known as post-quantum cryptography, is an encryption algorithm that is supposed to be resistant to quantum computing attacks.
The Road Ahead: How Cryptocurrencies Are Preparing for Quantum Computing
As the potential threat of quantum computing looms on the horizon, the cryptocurrency community is taking proactive steps to future-proof itself. There are several key initiatives underway to protect Bitcoin and other digital currencies from the quantum threat.
- Post-Quantum Cryptography (PQC): Cryptographers are developing new cryptographic algorithms that are resistant to quantum computing. Lattice-based cryptography, hash-based cryptography, and multivariate polynomial cryptography are some of the methods being explored. These quantum-resistant algorithms are designed to withstand the power of quantum computers and could be implemented to replace ECDSA and SHA-256 in the future.
- Quantum-Resistant Blockchains: Some blockchain projects are already exploring the possibility of building quantum-resistant chains. One such example is the Quantum Resistant Ledger (QRL), which uses a quantum-secure algorithm for transaction signing. Other blockchain projects, including Ethereum, have also discussed quantum resistance as part of their long-term roadmap.
- Bitcoin’s Transition to Quantum-Resistant Algorithms: Bitcoin’s decentralized nature allows for upgrades to its protocols through consensus. Should quantum computers become capable of cracking Bitcoin’s encryption, the community could implement a smooth transition to a quantum-resistant algorithm. This would likely involve switching from ECDSA to a post-quantum alternative, ensuring the security of Bitcoin without compromising the integrity of the network.
- Quantum Key Distribution (QKD): Another possible solution is quantum key distribution, which allows secure sharing of encryption keys using quantum mechanics. This technology could provide an additional layer of security for cryptocurrencies in the quantum age, ensuring that keys are exchanged in a way that quantum computers cannot intercept.
Conclusion: A Resilient Future for Cryptocurrencies
Google’s Willow is a significant milestone in the journey to quantum computing, but the threat it creates for Bitcoin and other cryptocurrencies is still some years off. Quantum computers are a long way from breaking Bitcoin’s cryptographic security, and the crypto community is already actively developing solutions to this problem ahead of time.
Cryptocurrency is getting ready for a future where quantum computing becomes a fact of life, thanks to ongoing research into post-quantum cryptography and the evolution of quantum-resistant protocols. As we enter the quantum age Bitcoin and other digital currencies will continue to develop and evolve so they remain as secure as possible from whatever technology may arise.
However, the challenges posed by quantum computing are real and the quantum threat will evolve, just like every other recent threat to the cryptocurrency ecosystem. Even with a quantum revolution, Bitcoin and other cryptocurrencies have an incredible outlook.
