Assessing The Current Security Risks To Cryptocurrency

When it comes to the current risks in cryptocurrency, some are better known than others. The ever-evolving plans of U.S. regulatory bodies are top-of-mind for investors. Then there are the daily hacks on user wallets and widespread store-now-decrypt-later attacks. 

Indeed, the feds’ tacit approval of Bitcoin as the only legitimate cryptocurrency – even given its fundamental and unfixable security flaws – is the best evidence of what appears to be a lack of technical understanding in how today’s regulators operate. 

To put it simply, Bitcoin seems to implement a poorly optimized technology base that various groups have done their best to stretch into something workable for profit. By any measure, Bitcoin is a leading cryptocurrency. But a look at the technology by anyone with a basic understanding of the internal mechanics will likely reveal shocking security vulnerabilities to them. 

The lack of forethought that seems to be reflected in the selection of the core cryptography of Bitcoin, as well as the more recent removal of certain protections (the Taproot update), seem to highlight the true lack of longevity and good judgment of the companies that make up the management of this supposedly decentralized product. 

Let’s examine how these security vulnerabilities could ultimately play out. 

Without getting to deep into quantum computing or Shor’s algorithm, we can simply say that if the current rate of error correction and qubit density follows the same trend for the next five to seven years, Bitcoin could be doomed. Quantum computers will mean that all funds could be lost and the network could be rendered irrelevant and obsolete. 

But can't this simply be patched? 

It would seem not. Put simply, decisionmaking and the very nature of a blockchain make patching the problem functionally impossible. The reason for this is that every single Bitcoin wallet will need to make a transaction signing a new, secure wallet before there is any chance a quantum computer could corrupt the results. And of course, it would also require a total reinvention of the rest of the Bitcoin core protocol.

The quantum reality – and Bitcoin’s potential doomsday – is rapidly approaching. What are you doing to future-proof your digital assets? 

Learn about crypto with less risk and the Quantum Resistant Ledger (QRL), the only digital asset with innate permanent post-quantum security from the genesis block to now.

Featured photo by Art Rachen on Unsplash.

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