In the crypto industry, there are always concerns, whether it's about exchanges facing problems or changing regulatory policies. Even with the bear market at this time, cryptocurrencies have continued to progress strongly throughout the past year.
However, there are still some who see challenges ahead, namely quantum computing.
Will quantum computers be the end of crypto?
Quantum computing technology can process data thousands of times faster than traditional computers; early tests found it could solve equations that traditional computers would take thousands of years to solve.
It sounds bad for crypto; theoretically, quantum computers could decode SHA256, which is the protocol that protects the Bitcoin ledger.
Although many media present quantum computing and Bitcoin as inevitable adversaries, upon closer inspection, both technologies could be potential allies in enhancing digital security and processing efficiency.
Indeed, early crypto investors and enthusiasts like Charlie Shrem mentioned earlier this month at the Moneyshow conference that...
Quantum computing and crypto are mutually reinforcing technologies.
In summary, quantum computing is not something that destroys crypto but is a catalyst for Bitcoin to evolve, becoming stronger, safer, and more scalable than before.
Opportunities for crypto as quantum develops.
The open-source nature of Bitcoin allows crypto graphers, developers, and academics to collaborate rigorously to test and solve issues.
The challenges posed by quantum computing are like a driving force that helps Bitcoin strengthen its cryptographic infrastructure rather than being something that destroys it.
Crypto communities are developing quantum-resistant signature structures, such as Lamport signatures, that can be upgraded in networks through backward-compatible soft forks, similar to the Taproot upgrade in 2021.
Such continuous development shows that the emergence of quantum computing stimulates innovation rather than rendering it obsolete, and as new technologies continually emerge, the industry keeps growing, which is good news for Bitcoin.
The transition to post-quantum cryptography is more than just a defensive measure.
Quantum computing uses the fundamental principles of nature, which may support Bitcoin more than pose a threat to Bitcoin, as Shrem stated.
The National Institute of Standards and Technology of the United States has officially established standards for quantum-resistant encryption algorithms, marking a significant step for the industry.
Because algorithms like CRYSTALS-Kyber have created a new safety framework that benefits the entire digital ecosystem.
Digital currencies from Bitcoin and subsequent currencies can utilize these advancements, transitioning from a quantum-vulnerable system to a truly quantum-resistant new standard of digital asset security.
While researchers have created and tested blockchains that can only be mined with quantum computers, this marks the first practical application of quantum excellence in blockchain technology.
This prototype has been tested on four quantum processors distributed across geography, proposing the concept of proof of quantum work as an alternative to traditional proof-of-work systems.
Quantum solutions for blockchain.
Unlike Bitcoin mining, which uses a high amount of energy, consuming 176 terawatt-hours in 2024, this quantum blockchain system will have improved mining efficiency through quantum mechanics.
Quantum computers open opportunities to solve various blockchain problems by significantly increasing transaction processing speeds.
For example, while Bitcoin's consensus mechanism is secure, there can sometimes be delays and resource-intensive processes, which quantum computers could optimize consensus algorithms, verify transactions faster, and help solve the scalability issues that have plagued blockchain networks for years.
This processing power will enable Bitcoin to process thousands of transactions per second without compromising decentralization.
Quantum-enhanced blockchain systems have introduced quantum key distribution and quantum random number generation to create advanced security against data leaks and unauthorized access.
In other words, rather than replacing the security of Bitcoin, quantum technology will help reinforce it.
Quantum key distribution allows for theoretically unbreakable data encryption for the security of Bitcoin wallets and transactions, while quantum random number generators ensure that private keys are absolutely unpredictable.
The convergence of these technologies creates opportunities for hybrid systems, such as quantum tokens that can add layers of privacy to specific blockchain applications.
This complementary approach allows Bitcoin to integrate the advantages of quantum while maintaining the proven decentralized structure.
Quantum challenges have united the crypto community like never before.
Blockchain analytics providers are preparing to accommodate formats and transaction types resistant to quantum to ensure continuity and security verification against quantum.
This coordination extends beyond digital currencies themselves, as it also includes exchanges, wallet providers, research institutions, and regulatory bodies that work together to ensure the entire ecosystem transitions smoothly.
The blockchain industry is actively facing threats from quantum computing by using quantum-resistant tokens and post-quantum encryption, along with projects focused on both network and hash-based cryptography.
This competitive innovation benefits the crypto world as the successful implementation in other projects that are quantum-resistant will help successful crypto projects continue to develop. This shared challenge is like a wave that elevates every project together.
We have hardly begun to explore its true potential, Shrem stated. Quantum computing is becoming a new form of computing, and we need to think broadly about what it means.
A new direction of Quantum for crypto in Thailand.
The relationship between quantum computing and cryptocurrencies does not necessarily have to be adversarial at all.
Estimates indicate that there are still about 5 to 15 years before quantum computers directly threaten current crypto standards, which is ample time for preparation.
Quantum blockchain can open doors to applications in many sectors requiring high security and advanced processing power, including secure voting systems, supply chain management, and sharing health data.
The decentralized governance and adaptability of Bitcoin place it in a good position to integrate quantum advantages.
As quantum computing advances, every crypto coin can integrate quantum-resistant cryptography, enhancing mining efficiency with quantum and adopting quantum security protocols.
With this, the cryptocurrency ecosystem will become a more secure, efficient, and scalable society than ever before, not because quantum computing is an obstacle, but because of quantum computing itself.
This supportive relationship does not signify the end of Bitcoin but rather the beginning of a quantum-driven future.
