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Perspective by: David Carvalho, founder, CEO and chief scientist of Naoris Protocol
Satoshi Nakamoto transformed our understanding of currency. In reaction to the 2008 downfall of financial institutions where millions had placed their confidence, Satoshi devised a decentralized monetary framework founded on elliptic curve cryptography.
This fusion of rigid mathematics and decentralization was formidable, attracting not only staunch skeptics but also major financial organizations, such as BlackRock.
In its 16 years of existence, Bitcoin has never been compromised. All that is set to change shortly, however, with the emergence of quantum computing. This represents the most significant single risk to Bitcoin since its emergence from the remnants of the global financial collapse.
Once firmly parked in the realm of science fiction, quantum computers have progressed so significantly that they could feasibly breach Bitcoin’s cryptography within five years or even sooner. Some, including quantum expert Michele Mosca, forecast it might even happen as early as next year.
Government bodies such as the US National Institute of Standards and Technology and the National Security Agency are striving to fully transition to quantum-safe protocols by 2030. Yet, the Bitcoin community seems limited to theoretical resolutions, like BIP-360 (Pay-to-Quantum-Resistant-Hash) or commit-delay-reveal methodologies.
The moment for speculation has ended. If tangible measures to adapt the Bitcoin blockchain are not taken immediately, Bitcoin’s (BTC) entire $2.2-trillion market capitalization could vanish in an instant. All it would require is a single compromised wallet or mishandled transaction to dismantle 16 years of painstakingly established trust.
The emergence of supercomputers
This year’s significant advancement was Microsoft’s Majorana chip, which accelerated the timeline for developing a genuinely effective quantum supercomputer from decades to just a few years. In layman’s terms, it did this by setting the stage for scalable and stable quantum systems — two critical obstacles that had hindered this technological breakthrough.
Fast forward several months, and we currently have approximately 100 quantum computers operational worldwide. McKinsey estimates there will be 5,000 by 2030. These machines are not only faster than the conventional systems we’re familiar with — they represent an entirely different category of computer that conducts calculations in parallel rather than sequentially.
Recent: Is Bitcoin’s future in jeopardy due to quantum technology?
This poses a severe threat to classical cryptography, such as the ECDSA algorithm safeguarding Bitcoin’s private keys. At least 30% of Bitcoin, or roughly 6.2 million coins, presently reside in pay-to-public-key (P2PK) or reused P2PK-hash addresses, which are particularly susceptible to this quantum menace.
A breach would be disastrous for holders, whose assets would vanish forever, along with the broader ecosystem. It would establish that the supposedly unbreakable system can indeed be breached. That’s why BlackRock recently recognized the quantum threat to Bitcoin in its updated spot ETF documentation. That’s why the moment to act is now, before it is too late.
Preparing for Q-Day
“Q-Day” refers to the occasion when quantum computers are fully equipped to dismantle conventional cryptography. When this day arrives, Bitcoin transactions validated and secured today, or even a decade ago, could still be at risk because the blockchain is entirely transparent, and the data is permanently available on this ledger forever.
Additionally, malicious actors are already gathering encrypted data in anticipation of Q-Day, in a strategy termed “harvest now, decrypt later.” It wouldn’t be far-fetched to speculate that multiple attacks could occur simultaneously worldwide when Q-Day arrives. When that moment comes, Bitcoin must be prepared.
A post-quantum horizon
The challenge of upgrading an entire blockchain from legacy to post-quantum cryptography lies in the necessity of a hard fork, which has become somewhat of a taboo topic in crypto circles. This monumental step could disrupt the user experience, fragment liquidity, risk splitting the network, and potentially alienate passionate OGs.
There are alternatives: hybrid solutions that prioritize securing transactions without altering the primary layer, layered security models, and quantum-secure key management, as well as frameworks that can ready Bitcoin for the impending onslaught.
This is not a quick remedy. Considering how cautious and slow-moving Bitcoin has historically been, time is of the essence. Choices must be made, and solutions must be selected, as Bitcoin in its current form is unlikely to endure in a post-quantum era.
Satoshi granted the world a new monetary framework but never implied it couldn’t progress. Now it’s the community’s responsibility to decide to evolve it and prepare for Q-Day, instead of waiting until it’s too late. It’s not quantum that poses the greatest risk to Bitcoin — it’s complacency.
Perspective by: David Carvalho, founder, CEO and chief scientist of Naoris Protocol.
This article is for general informational purposes and is not meant to be and should not be construed as legal or investment advice. The opinions, thoughts, and beliefs shared here are solely those of the author and do not necessarily mirror the views and opinions of Cointelegraph.
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