The development of quantum computing is progressing quickly – and, according to experts, could become a serious threat to Bitcoin and other cryptocurrencies.
• Black skirt counts quantum computers to risks for Bitcoin
• Cryptography and functionality of the Bitcoin network may be threatened in the future
• Quantum researchers corrects requirements for cracking crypto keying downwards
Blackrock, the world’s largest asset manager and editor of the Ishares Bitcoin Trust ETF, emphasizes a potentially profound technological threat to the Bitcoin Spot ETF: quantum computers. In the section on the risk factors to which the Ishares Bitcoin Trust ETF is subject, it is also expressly warned of the dangers that could result from progress in quantum informatics. Accordingly, there is the possibility that future developments in mathematics and digital data processing could compromise the security of the Bitcoin network.
Advertising
Over 500+ cryptos and 3,000 digital assets
Bitpanda is the Bafin-licensed crypto broker from Austria and the official crypto partner of FC Bayern Munich. Create your account with just a few clicks and benefit from 0% deposit and withdrawal fees.
Bitcoin and quantum computer: Black skirt sees security risks
Specifically, Blackrock states that “developments in mathematics and/or technology, including progress in digital data processing, algebraic geometry and quantum informatics” could lead to the fact that cryptography that Bitcoin is based could be ineffective. This means a risk of attacks that may arise in the future, which are made possible by new calculation methods, such as quantum computers. This could lead to malicious players bypassing Bitcoin’s security mechanisms, using the source code or even stealing bitcoins of the trust. “In addition, the functionality of the Bitcoin network could be affected, so it becomes unattractive for users and the demand for Bitcoin is falling,” it continues. This also applies if other digital assets are affected instead of Bitcoin, as this shakes confidence in the source code or cryptography, which is based on digital assets.
So far, however, quantum computers have not yet been able to crack the encryption behind Bitcoin and other cryptocurrencies. However, it could only be a matter of time until they succeed – and this day may even come earlier than accepted, as a scientist from Google Quantum Ai explains in a new research paper.
Hanging up crypto security: quantum researchers corrected assessments
In a new scientific analysis, Craig Gidney, quantum researcher on Google, has also significantly revised his previous assumptions to the performance of quantum computers in an attack on cryptosystems. Gidney writes that cracking the widespread RSA encryption could in future be possible with around 20 times less resources than previously thought. While his earlier estimate from 2019 still assumed that 20 million quBITs are required for decoding an RSA -2048, a number with 617 decimal places, he is now assuming less than a million quBits – and expects a success in less than a week.
In his study, Gidney does not explicitly mentions Bitcoin or other cryptocurrencies, but according to the “Coindesk”, the encryption method RSA forms the technical backbone for securing crypto wallets and in some cases also of transactions. However, the crypton notification side limits that Bitcoin is not based on RSA, but on elliptical curve cryptography (ECC), but the risks are still serious. ECC can be similarly susceptible to quantum attacks.
However, current quantum computers are far from sufficient in the reduced assessment to crack the encryption method of Bitcoin and Co., because the most powerful quantum computer has just around 1,100 qubits and is therefore far below the one million qubits assumed by Gidney. However, the correction of his first assumption, which is only a few years old, illustrates how quickly quantum technology develops – and how much the danger potential also increases. The risk is no longer purely theoretical – but is increasingly moving towards reality with increasing computing power.
Editor finance.net
By the way: Alphabet C (Ex Google) and other US shares are even tradable at Finance.net Zero until 11 p.m. (without order fees, plus spreads). Open Depot now for free And receive a free stock as a gift.
Selected leverage products on Alphabet C (Ex Google)
With knock-outs, speculative investors can participate disproportionately in price movements. Simply choose the desired lever and we will show you suitable open-end products on Alphabet C (Ex Google)
The lever must be between 2 and 20
Advertising