Quantum computers can be used to compromise bitcoin wallets, but cryptographers are taking no chances and developing counter-measures. Read on to know more…
From past few years, there has been a debate on Quantum computers being used to crack bitcoin wallets which in a normal situation will be several million times for traditional computers to crack the code.
Despite the fact that quantum computing is still in its infancy, governments and private-sector organisations like IBM, Microsoft and Google are attempting to make it a really big in their ways. Quantum computers can be powerful enough to crack the cryptographic encryption that secures mobile phones, bank accounts, email addresses, and, even bitcoin wallets, within a decade.
Some cryptocurrency mining specialists have said that countries like China can crack cryptographic security in a span of eight years if they had stronger quantum computers in their arsenal. This may be the reason why cryptographers all around the world are working feverishly to develop a quantum-resistant encryption protocol.
Quantum Hacking
Asymmetric cryptography, in which individuals utilise a private and public key combination to access things like email and crypto wallets, is currently used in much of the world. All the online transactions in every financial institution, everything that is accessed on online computers and smart devices is dependent on asymmetric cryptography, which is vulnerable to quantum computer attack.
The public-private key pair allows users to create a digital signature that can be validated by anyone who possesses the corresponding public key. This digital signature is known as the Elliptic Curve Digital Signature Algorithm which relates to cryptocurrencies like bitcoin, and it assures that bitcoin can only be spent by the rightful owner. When you trade Bitcoin on platforms like bitcoindigital, your transactions are protected by the elliptic curve digital signature.
Now the real issue here is that someone might theoretically reverse-engineer your private key, counterfeit your digital signature, and then empty your bitcoin wallet using quantum computing. Infact, some of the top experts in quantum computing fear that the first types of digital signatures that quantum computers would break are elliptic curves based digital signature algorithms, which are now used in bitcoin wallets.
But again, experts are of the view that quantum hacking of bitcoin wallets would be happening in a gradual manner rather than all of a sudden thing.
Counter-Measures
As the threat of Quantum hacking is real, the fact that that cryptographers have already informed the crypto community that quantum hacking can be mitigated. For example, it has been determined that quantum computing will be implemented progressively rather than all at once. As a result, there will be countermeasures in place to strengthen Bitcoin wallets. The fact that quantum computing is not a secret means that people are aware of its existence, giving them enough time to prepare.
The National Institute of Science and Technology (NIST) based in the United States has been hard at work developing a new and enhanced encryption that will protect your data against quantum threats. This is a technological issue that can only be solved with a technical solution, which is currently being developed.
Experts argue that the process of widespread migration will begin once a new standardised post-quantum secure cryptography is established. Once this happens, everyone who owns bitcoin or ethereum will move their funds from their digital identity, which is protected by an old type of key, to a new wallet, or new account, which is protected by a new type of key.
Several standardisation techniques are currently being tested in order to protect digital signatures. By 2024, full-proof post-quantum encryption will be available, allowing traders to deal without fear.
The Road Ahead
Security upgradation of large scale migration to quantum-proof hacking necessitates user participation. This procedure may be easier than asking a decentralised network of crypto holders to update their systems individually in some instances where fiat money accounts are centralized through a bank.
There may be new challenges as a result of the new improvements. However, there is a positive hope that by the time quantum takes full effect, security updates will have been implemented to protect the digital wallets. Cryptographers are dedicated to keeping up with the digital world’s changes.