The Quantum Threat To Cryptocurrency: How QRL's Quantum-Safe Blockchain Technology Could Be Poised To Revolutionize The Industry

Cryptographic protocols that secure networks like Bitcoin and Ethereum are – for the time being – impervious to even the most advanced computers. However, imagine a near-future scenario where computers have advanced to such a level that current cryptographic standards become insufficient. 

This potential danger arises from quantum computers, a cutting-edge technology that has the potential to compromise many of the encryption protocols used in cryptocurrencies today. Although quantum computers are in their infancy and not yet powerful enough to do so, experts predict that, if current trends continue, they could threaten blockchain networks by 2030.

Quantum Resistant Ledger (QRL) aims to address this doomsday threat as the world’s first post-quantum store of value and decentralized communication network to proactively tackle the threat of advanced quantum computing. The following article will deep dive into the nature of the quantum threat, and explain how QRL could be positioned to transform the industry by providing a post-quantum solution.

The Quantum Threat to Cryptocurrency

Before delving into how QRL offers a solution to the quantum threat to cryptocurrency, it is important to understand how quantum computers work and the current risks associated with popular blockchains such as Ethereum and Bitcoin.

What Is Quantum Computing?

Quantum computers are a type of supercomputer with far superior processing power than classical computers. They are able to carry out many computations while simultaneously considering several different configurations – this makes them exponentially faster than traditional computers.

Over the past few years, quantum computing has shown significant progress in various fields, including AI, weather forecasting and medical research. However, in the wrong hands, quantum computing has the potential to pose a substantial risk to cybersecurity, and consequently, to cryptocurrencies as well.

For example, Google’s 54-qubit Sycamore processor completed a computation in 200 seconds that would have taken the most powerful classical computer in the world 10,000 years. According to a report by IBM, in theory, cryptographic protocols can be solved within a few hours with quantum computers.

Types of Quantum Attacks 

Broadly speaking, traditional cryptocurrencies face two primary types of threats, which are:

• Storage Attacks: An attack that targets individual wallet addresses, trying to break their security and steal the cryptocurrency stored in them. 
• Transit Attacks: An attack that focuses on taking control of all transactions happening in real-time on the network. 

Vulnerabilities of Existing Cryptocurrencies

Bitcoin and Ethereum, the world's two largest cryptocurrencies, account for almost 60% of the industry's total market capitalization. Bitcoin as an asset functions like digital gold, providing a decentralized, immutable and secure store of value. Conversely, Ethereum is like a publicly shared computer network that enables developers to create applications on decentralized servers.

When it comes to storage attacks, Ethereum is at a higher risk than Bitcoin. A recent Deloitte study revealed that about 65% of all Ether is vulnerable to quantum attacks, significantly more than the 25% of vulnerable Bitcoin.

Transit attacks, though more severe, are also more challenging to execute. According to Mark Webber at the University of Sussex in the U.K., breaking this level of encryption would reportedly require a quantum computer with 1.9 billion qubits of power. 

This number is staggering, especially when compared to IBM's IBM most advanced quantum computer, which has only 127 qubits in comparison. Ethereum's creator, Vitalik Buterin, tweeted in 2019 that current speculations about quantum computing are as distant from real quantum computing as hydrogen bombs are from nuclear fusion. But rapid advancements in AI-assisted technology could be changing the outlook and accelerating the quantum timeline.    

QRL's Quantum-Safe Blockchain Technology

Traditional cryptographic methods such as RSA and elliptic curve cryptography (ECC) rely on computational complexity for security. However, this model is an ineffective long-term solution since quantum computers can solve these methods. QRL says it solves this vulnerability by creating cryptography based on problems that are believed to be resistant to quantum attacks, providing enhanced security in the quantum era. 

One of the key components of QRL’s cryptography is the eXtended Merkle Signature Scheme (XMSS). This is a unique mathematical function that is designed to allow for secure and efficient transaction authentication when taking into account the trends of quantum computers.

In addition to securing transactions, QRL leverages advanced techniques such as on-chain lattice key storage and layer-to-internode communication to secure communications on the blockchain. 

The Road Ahead For QRL And The Cryptocurrency Industry? 

Overall, although the advent of quantum technology raises concerns, the ongoing development of cryptographic encryption has the potential to surpass the progress of quantum computing. 

As quantum computing remains in its nascent stages, investors and centralized organizations have the opportunity to transition to quantum-resistant cryptography. The situation is much different for decentralized blockchain technology, which post-quantum security analysts insist has a fatal and fundamentally unfixable flaw. QRL doesn’t have this problem, they maintain. In any case, QRL seems to be at the vanguard of the post-quantum security frontier and well-positioned to offer a safe way for transactions and communications in a post-quantum world.

Featured Photo by Sunil Ray on Unsplash 

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