Advances in quantum computing doesn’t just threaten Bitcoin wallet security, it could also undermine its economic and security model as it could be used to mine Bitcoin blocks far more efficiently, according to Coinbase’s head of investment research, David Duong.
Quantum as a potential threat to the crypto industry, as more advanced computers that could break encryption have been theorized to have the capability to reveal user keys and expose sensitive data.
However, Duong in a LinkedIn post on Monday that another possible issue is on the horizon. He argues that the core risks on “Q-day” are cryptographically relevant quantum computers running “Shor’s and Grover’s Algorithms to undermine bitcoin’s cryptographic signature.”
“That is, bitcoin’s security relies primarily on two cryptographic pillars: the Elliptic Curve Digital Signature Algorithm (ECDSA) for transaction signatures and SHA-256 for the proof-of-work mining processes,” he said.
“That means quantum computers actually pose two separate threats. They could potentially break the cryptographic security of private keys, allowing attackers to steal funds from vulnerable addresses, and they could potentially mine blocks more efficiently, disrupting Bitcoin’s economic and security model.”
More computing power could upset miner balance
Bitcoin and energy to solve complex mathematical problems, which add transaction blocks to the network. Quantum computers are speculated to be able to perform exponentially faster than current computers.
Attacks such as a 51% attack a massive and could allow one miner or a group to control more than half of Bitcoin’s total mining power and manipulate the blockchain.
“That said, we think quantum mining itself remains a lower-priority concern for now given scaling constraints, making signature migration the central issue,” Duong said.
“Overall, we do not view quantum computing as an imminent threat because today’s machines are orders of magnitude too small to break Bitcoin’s cryptography. That said, we are glad that the open-source community remains vigilant about engineering post-quantum migration paths.”
Related:
Skeptics say quantum computing threat decades away
Skeptics, such as cypherpunk Adam Back, is overblown, and the technology is likely decades away from being viable.
Meanwhile, those on the other side of the debate, such as Charles Edwards, the founder of quantitative Bitcoin and digital asset fund Capriole, and steps need to be taken much sooner to keep the network secure.
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