Benzinga - Cryptocurrencies are here to stay, there is no doubt about it. Over the past few years, cryptocurrency has surged in its adoption and development. The likes of Bitcoin and Ethereum are on the cusp of mainstream recognition, with the global cryptocurrency market cap surpassing the $2 trillion mark in 2021, rivaling even the biggest companies in the world like Apple (NASDAQ: AAPL).
Although traditional cryptocurrencies offer numerous benefits and use cases, the vast majority of investors have seemingly overlooked a looming danger — quantum risk. Indeed, the security of popular cryptocurrencies such as Bitcoin and Ethereum is threatened in the medium-to-long term, with advances in AI poised to collapse those timelines even further.
Enter the Quantum Resistant Ledger, or QRL – the world's leading post-quantum store of value – at the forefront of tackling this industry-wide risk. In the following article, we will delve deep into the threats of quantum computing and examine how QRL offers a solution.
The Quantum Threat To Bitcoin And Ethereum
Before diving into the quantum threat to Bitcoin and Ethereum, it's worth understanding what quantum computers are and how they work.Assessing The Security Threats Posed By Quantum Computing Quantum computers are superpowered computers. They use principles of quantum mechanics – the study of tiny particles – to perform complex calculations much faster than classical computers.
The security of traditional cryptocurrencies is based on intricate mathematical processes known as hashing algorithms, as well as digital keys that employ public-key cryptography. Together, these systems discourage tampering by making it extremely expensive and challenging for malicious users to exploit the system.
The emergence of quantum computers threatens to upend this security paradigm. Due to their unmatched processing capabilities, quantum computers are expected to ultimately enable bad actors to bypass the disincentives against tampering with alarming ease.
Examining The Risks Facing Ethereum And Bitcoin Ethereum (ETH) is the most well-known altcoin in the cryptocurrency space and the second-largest cryptocurrency by market capitalization. Ethereum is a publicly shared global computer network — it provides a decentralized and secure network for developers to build applications.
Fortunately, quantum-centric computers with 50 to 1,000 qubits of power, such as IBM's (NYSE: IBM) Quantum Osprey, pose a limited threat to Ethereum – at the moment. However, if they continue to develop and amass more processing power in the form of qubits, the implications are scary.
According to a recent study by Deloitte, about 65% of all ether coins are vulnerable to a quantum attack, and this number has been continuously increasing. There are two types of attacks that have the potential to exploit this vulnerability:
- Storage Attacks: An attack that targets individual wallet addresses, trying to break their security and steal the Ethereum (ETH) stored in them. A quantum computer would need more than 10 million qubits to perform this attack.
- Transit Attacks: An attack that focuses on taking control of all transactions happening in real time on Ethereum. The attacker tries to hijack transactions while ‘they’re in transit,’ redirecting the ETH to their wallets. This attack is far more of a doomsday scenario and would take billions of qubits.
Bitcoin is the most secure and decentralized cryptocurrency in the market. While Bitcoin may be largely considered as safe for now, many other less decentralized and secure cryptocurrencies can’t say the same.
QRL: A Superior Solution For Post-Quantum Security?
In light of these potential threats to Bitcoin, Ethereum and the broader cryptocurrency market, the Quantum Resistant Ledger (QRL) emerges as an innovative solution.QRL ensures the long-term security of digital assets by employing a cryptographic technique called eXtended Merkle Signature Scheme (XMSS), recognized by the National Institute of Standards and Technology (NIST). While its underlying processes can require some study to grasp, what’s important to know is that it is designed to allow for secure and efficient transaction authentication when taking into account the capacities of quantum computers.
Moreover, QRL's unique blockchain technology not only protects transactions but also secures communications. Combining advanced techniques such as on-chain lattice key storage and layer-to-internode communication, QRL creates a highly secure messaging system that remains safe from quantum computer threats.
Embracing QRL: Paving The Way For Quantum-Proof Digital Assets And A Secure Future
If blockchain technology wants to stay ahead of the quantum risk in the next 10-15 years, current blockchains need to evolve into quantum-resistant ledger systems. Unfortunately, it isn’t feasible or possible for many current blockchains to make this shift before the threat arrives.This is why blockchains like QRL could be the future, taking into account the quantum risk posed by quantum supercomputers. QRL is a promising solution, with a rich API and user interface, and it offers an effective defense against ever-evolving quantum computers.
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