Many experts have warned of the possibility that quantum computing could pose a serious threat to the security of Bitcoin and other cryptocurrencies.
A study by MIT researchers revealed that the threat would be imminent within 10 years.
The study concluded that Bitcoin’s proof-of-work algorithms would be resistant to the speed of quantum computers, but it found that a way to circumvent Bitcoin’s security features is to calculate the private key using the public key.
With current conventional computing, this is said to be not feasible but relatively easy with quantum computers. According to MIT research, the “elliptic curve signature scheme used by Bitcoin is much more at risk and could be completely broken by a quantum computer as early as 2027.”
When transactions are proposed on the blockchain, a public key is revealed with the signature. This gives a very short window to calculate the private key from the public key. Once the private key is calculated, a hacker could change the signature and, therefore, the recipient of the transferred funds.
Furthermore, all transactions where the public key is known and stored on the blockchain leave their respective wallets vulnerable to fake transaction proposals.
Currently, quantum computing technology is not yet at the stage where it can topple Bitcoin, but as we learn more about its potential, the timeline for the security threat it poses to Bitcoin will become clearer.
The Bitcoin community and its influential developers need to work on a solution to the quantum computing threat. Currently, startups such as IOHK are working on what experts refer to as 3rd generation blockchain protocols.
IOHK is contemplating solutions for quantum computing and hopes to apply them to Cardano to create a quantum-resistant cryptocurrency. The crypto world could hit a wall without a solution to the quantum computing problem.
