Cryptocurrencies And Quantum computing

Quantum Computers

Quantum computing is a form of computing that solves computing problems in a three dimensional manner which is why it is used to make and crack cryptographic codes. This is the reason why it poses a threat to Bitcoin’s blockchain technology.

Bitcoin relies on an encryption technology known as the Elliptic Curve Cryptography to secure its mining operations but a 2018 report by two tech companies has raised some issues, these are that Bitcoin has been attacked by cyber rogues using quantum computers to exploit the vulnerabilities of its mining operations, pointing to the suspicion that more powerful computers may be able to disrupt the network of the blockchain on which Bitcoin was built.

A Full-Proof System?

Bitcoin in its early days, used a mining operation known as the P2PK to secure its mining operation. The result of the operation was that Bitcoin mining addresses were public but you need to obtain a private key which contains the actual information a potential attacker wants.

By using an algorithm known as “Shor’s Algorithm” on a quantum computer, an attacker can obtain the required information needed.

As a result of this breach, Bitcoin introduced a second method of mining operation which makes use of a one-way function encryption known as “P2PKH” which stands for “pay to public key hash” to store each recipient’s key as a hash. When anyone tries to obtain information on the public key, a hash function is displayed instead.

The Quantum Threat

One would think that this method made Bitcoin mining operation more secure but quantum computers are using upgraded exploits to attack vulnerabilities in Bitcoin that could still obtained information about recipients thus putting Bitcoin at risk.

Race Against Time

During the Bitcoin boom, more measures were taken by Bitcoin developers to secure their transaction by trying to create encryption methods that are quantum computer resistant. This was done by keeping abreast of current upgrades in quantum computing which is constantly evolving with new levels of technology thus giving cyber criminals more opportunities to attack and exploit the vulnerability of Bitcoin.

To curb these incessant attacks, developers proposed the creation of unique public and private key addresses for their recipients in order to make a potential attacker using quantum technology to have a monumental difficulties in their attempt at breaking into a blockchain.

Another counter measure is the use of an algorithm that will display each Bitcoin recipient’s hash function in a unique algorithm thus limiting the rate of attacks.

As far as Quantum computing goes, there will always be attempts at exploiting the blockchain metaverse through reverse engineering which is why developers have to keep abreast of current security threats from quantum computing to preventing future attacks..


Author: Godwin Okon