What will happen to Bitcoin in the event of the release of quantum systems? Quantum computers, when they begin to be widely released, will not be used in everyday applications such as writing something in Office or playing a game (although many would like to).
Instead, they will help with data processing tasks and problem solving that require very powerful computing power. However, while most of us have positive intentions for these upcoming technologies, there are others who think maliciously.
Quantum computers have an incredible ability to perform multiple calculations simultaneously, unlike conventional computers. For example, modern computers could never break a 256-bit key by crossing every combination, while a quantum computer could achieve this with great ease.
To see the difference in speed, we will cite the example of D-Wave 2X , which can solve algorithms 100,000,000 times faster than the most modern computing devices.
This means that brute force attacks against security protocols will suddenly have dramatic results, causing serious problems for global finance, computing, and information as a whole.
It is therefore not surprising that Bitcoin is also seriously at risk from the arrival of quantum computers.
Bitcoin, as well as other cryptocurrencies, have become very popular for many reasons.
- Cryptosystems provide almost complete autonomy, allowing individuals and businesses to purchase goods and services without revealing their identity.
- The system relies on encryption to keep wallets secure so that others cannot access another user's Bitcoins.
- Bitcoin is decentralized, meaning there is no Bitcoin bank or single server responsible for the entire system (this could lead to abuse). The Bitcoin system is maintained and supported by all computers on the network, with all transactions recorded in a public ledger.
But without encryption, the Bitcoin system would never work, as users would have no trust in the currency. Therefore, securing Bitcoin through encryption is paramount.
Bitcoin: What will happen when quantum computers are released?
Bitcoin wallets use 256-bit encryption, which is the only real defense against digital theft.
But quantum computers could very quickly determine the private keys of a system. This would either lead to a sharp drop in the value of Bitcoin or to the abandonment of Bitcoins altogether, as a very important ingredient of success, trust, would be lost.
Furthermore, the value of Bitcoin mining will become insignificant and will lead to a sudden overload of Bitcoins on the market or, better to say, in circulation. This increase in Bitcoin availability would cause hyperinflation (saturation) and therefore a drop in the price of Bitcoin.
Bitcoin, however, is not the only victim of such a security breach. All other cryptocurrencies, such as electronic trading systems, banks, financial institutions, websites, login systems, governments, and even file encryption would be at risk.
Quantum computers pose a threat to conventional security protocols that rely on modern computers that are too slow to break keys larger than 128 bits. But what about a different type of security protocol that wasn't designed for conventional systems?
What about quantum cryptography?
In quantum physics, there is a phenomenon that is truly amazing in itself: quantum superposition. Simply put, if the state of a particle is not observed and is not known, it is said to be in a superposition (i.e., the spin of an electron in all possible states). Once the particle is observed, the superposition is lost and the particle assumes a specific state. Then, there is a second phenomenon called quantum entanglement, where two particles become entangled in such a way that, if the state of one particle is known, then the state of the other particle can be inferred.
These two phenomena, when combined, can be used to transmit quantum states from one user to another. Imagine that this information could be a key that is to be used to decrypt a message using conventional systems.
In classical computing, sending a key over a network is safe as anyone can observe, obtain the key, and then decrypt the information being transferred between the two users.
But in quantum cryptography, the key that is sent “unencrypted” is in a quantum state. If someone reads the key, the superposition state will be lost, and the original recipient will detect the loss of superposition and discard the key.
This method of key distribution is called Quantum Key Distribution. Today, there are cryptographers working on the subject and developing cryptographic methods to combat quantum computers.
For example, Llew Claasen, executive director of the Bitcoin Foundation, said that solutions are currently being developed to make the system invulnerable to quantum technologies.
However, as the Bitcoin system is decentralized, the entire system will have to agree to any new change.
This may prove to be much more difficult than designing the new system itself.
