How Will Quantum Computing Affect Cryptocurrencies?

Quantum computing is on the way, with major companies like Alphabet and IBM pumping billions of dollars into developing the revolutionary technology. Quantum computing is likely to have a big impact on Web3 and could be set to shake up the cryptocurrency market as well.

Quantum Computing is Already Mainstream

The concept of quantum mechanics has traditionally been one best left to scientists due to the incredible complexity of it. However, it’s clear now that it is entering the mainstream, and more people are aware of it. This is highlighted by the emergence of quantum-related offerings in the entertainment industry.  

The online casino industry is one of the most booming sectors on the internet, so it acts as a good indication of what’s hot in popular culture. The online roulette at Paddy Power features various games with different themes, including Quantum Roulette and Quantum Roulette Live. These titles employ quantum concepts to the game to mix up the gameplay and add more multipliers.

The Marvel Cinematic Universe has also included the quantum realm as an explanation for its multiverse, and it even featured in the title of one picture – Ant-Man and The Wasp: Quantumania. This is arguably the best way to underline how quantum physics has entered the public domain and people are ready for the next leap forward into quantum computing.  

Quantum Mechanics Can Break Cryptographic Algorithms

The main worry for crypto enthusiasts when it comes to quantum computing is the effect that it could have on the blockchain. Cryptocurrencies like Bitcoin and Ethereum rely heavily on cryptographic algorithms for security. These algorithms include SHA-256 and elliptic curve cryptography and are currently considered secure against conventional computing attacks. However, the advent of quantum computing threatens to crack these algorithms.

Quantum computers operate on the principles of quantum mechanics, allowing them to solve complex problems much faster than traditional computers. One such problem is integer factorization, the backbone of many cryptographic algorithms. A Classiq article describes Shor’s algorithm, which is a quantum algorithm for integer factorization. In theory, this can break RSA encryption in a fraction of the time it would take a classical computer.

There are various threats that quantum computing could bring about. For instance, quantum computers could potentially decrypt wallet keys, allowing unauthorized access to users’ digital assets. They could also enable double-spending attacks on blockchain networks, undermining the integrity of these systems.

Quantum Resistant Blockchains Are Needed

With quantum computing on its way, cryptocurrency needs to evolve. The cryptocurrency community is already actively exploring quantum-resistant blockchain technologies. This involves developing new cryptographic algorithms that are secure against quantum computing attacks.

Several projects are underway. For example, the Quantum Resistant Ledger is already listed on CoinGecko. It’s a blockchain specifically designed to be secure against quantum computing threats, using post-quantum cryptographic methods. Similarly, Ethereum is considering incorporating quantum resistant algorithms in its future updates.

The good news for crypto enthusiasts is that these Web3technologies have already proven that they can evolve to combat threats. Quantum computing could lead to much more advanced forms of blockchain that lead to greater security for cryptocurrencies.