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Bitcoin worth $28bn susceptible to quantum attack

According to a recently published research by Delloite, bitcoin worth $28bilion are in imminent danger of a quantum attack.

These amount of vulnerable bitcoin comprises of 19 per cent of the total existing bitcoin in the globe.

Quantum computing has always posed a threat on not only the future of bitcoin and other alt currencies but also jeopardised the fate of blockchain.

It is however believed that if quantum computing reaches a level where it can attack blockchain’s the likes of bitcoin and other major cryptocurrencies could be torn apart in mere minutes.

However, there is work being done to make quantum-resistant blockchain’s and for the preservation of Bitcoin.

In quantum’s presence, is bitcoin really in danger?

Since the break of the news that bitcoin could be attacked with advanced quantum computing, the crypto world has been panicking.

However, there is the need to answer a question as to how could quantum computing pose a threat to bitcoin, other cryptocurrencies and blockchain.

According to Deloitte research, all the coins which are located in the ‘pay to public key’ (P2pk) addresses, and use ‘pay to a public key hash’ (P2pkh), stand in grave danger of the threat.

However, it should be noted that when bitcoin came into existence in 2016, almost all coins were stored in P2pk addresses.

Delloite research report that bitcoin held in “pay to public key” (p2pk) addresses are at a higher risk of quantum attack.

This is because their public keys could theoretically be used to derive a private key

However, if even a portion of bitcoin becomes susceptible to quantum computing, it would severely damage the trust and belief in the coin.

Delloite research has revealed that since the P2pk addresses are being left without much use and reuse.

What next for bitcoin in wake of quantum threat

To bring solace to the mind of bitcoin patrons, Deloitte hinted on ongoing attempts to create new methods of cryptography that are resistant to quantum attack.

These new cryptographs would one day be integrated into the leading crypto assets.

On the other hand, threats posed by the advanced computing is real and imminent.

From time to time, we hear of threats that this advanced computing can pose to our financial ecosystem and also to the blockchain.

The real and present danger makes us revise the present structure of the blockchain so that cryptocurrencies are secured and rendered harmless by the threat.

Delloite through their research publication further mentioned that the only solution to the threat is to transition to a new type of cryptography called ‘post-quantum cryptography’.

This is considered to be inherently resistant to quantum attacks. These types of algorithms present other challenges to the usability of blockchains and are being investigated by cryptographers around the world

Muhaimin Olowoporoku
Muhaimin is a journalist and a crypto enthusiast. He believes in the Africa project and sees blockchain technology as a possible solution alongside developmental journalism


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