Quantum Computers and Crypto: No Immediate Threat, But Caution Needed

There’s been a lot of talk lately about how quantum computers are taking over the security of Bitcoin. The latest story comes from Chinese researchers who allegedly used a D-Wave quantum computer to crack certain encryption algorithms. 

Some of the algorithms are used for banking, military data, and crypto wallets. That might sound alarming, but at the same time quantum computers are not exactly an essential threat to cryptocurrencies.

Here’s a breakdown of the situation:

What the Researchers Found

Chinese researchers are claiming they used a quantum computer to hack certain encryption algorithms. They targeted RSA encryption-one of the most common methods to ensure data privacy. The result details are still unclear, and other teams are yet to verify them. However, they said that the algorithms they allegedly tested aren’t necessarily the same ones in usage today by Bitcoin or any other cryptocurrency.

Importance of RSA

RSA encryption uses prime numbers. It’s easy to multiply two prime numbers together, but the reverse-finding the two original numbers from a product-is very hard. It gets much harder as the numbers get much larger. If hackers were to break RSA using quantum computers, then they would have to factor enormous prime numbers in a very short time. As yet, there’s no evidence that this has happened on a grand scale.

Current Capabilities of Quantum Computers

D-Wave machines, of which the one used in this study is one, are specific quantum devices and not full quantum computers. They are suitable for certain types of problem-solving but fall far short of breaking large RSA keys, which banks and cryptocurrencies use. Today’s RSA numbers are around 1,024 bits, much larger than the sizes factorized in this study.

Are Crypto Keys at Risk?

Currently, the elliptic curve cryptography (ECC) used by Bitcoin is more efficient than RSA. ECC allows for smaller keys and is generally considered secure against quantum attacks, for now. Cryptocurrencies like Bitcoin don’t use RSA, which is more common in banking. This means that, for the moment, Bitcoin’s private keys are safe.

Looking to the Future

But someday, quantum computers might get powerful enough that they could also break today’s cryptographic systems. This is why so many in the field want “post-quantum cryptography” that would make those systems impervious to quantum attacks.

Ethereum co-founder Vitalik Buterin once said, in the event of a quantum attack, the damage could be repaired via a “hard fork.” If only it were that easy to implement a hard fork. It would require consensus from the community and could slow down the network.

Preparing for Quantum Computing

Experts agree that the crypto industry must start planning for the quantum future now. Developing quantum-resistant algorithms is essential. While dangerous quantum computers might not exist yet, they are coming. Here’s what needs to be done:

• Transition to post-quantum cryptography: Safeguards need to be developed.
• Update software regularly: Including wallets and exchanges.
• Monitor quantum computing advancements: To stay ahead of potential threats.

Quantum computers are not yet a real threat to Bitcoin or other cryptocurrencies. But the industry should remain vigilant and prepare for the future.