Quantum supremacy has the potential to significantly disrupt blockchain technologies and cryptocurrencies, primarily due to the vulnerabilities of current cryptographic systems to quantum attacks. However, the timeline and severity of these effects depend on when quantum computers become capable of breaking widely used cryptographic algorithms and how quickly the industry adopts quantum-resistant measures.
Key Impacts of Quantum Supremacy on Blockchain and Cryptocurrencies
- Breaking Cryptographic Algorithms
- Public-Key Cryptography: Most blockchain technologies, including Bitcoin and Ethereum, rely on elliptic curve cryptography (ECC) for securing transactions and wallets. Shor’s algorithm, a quantum algorithm, can theoretically break ECC, exposing private keys and allowing unauthorized access to wallets.
- QWID uses a dual encryption PQC scheme. Additionally, a new scheme can be voted to replace half of the pair
- Hashing Algorithms: Cryptographic hashing functions (e.g., SHA-256) used in blockchain proof-of-work are less vulnerable to quantum attacks, but Grover’s algorithm can still weaken their security by reducing brute-force effort by a square root factor.
- Threat to Consensus Mechanisms
- Proof-of-Work (PoW): Quantum computers could potentially perform mining tasks exponentially faster than classical computers, leading to centralization of mining power and potential 51% attacks.
- Proof-of-Stake (PoS): While PoS systems are less reliant on computational power, the compromise of private keys could allow attackers to seize control over staked assets or validator nodes.
- QWID has a novel Proof-of-Synergy consensus Algorithm which combines aspects of THREE mechanisms: Proof-of-Work, Delegated Proof-of-Stake and Proof-of-Authority in a highly optimized way.
- De-anonymization
- Quantum computers could break cryptographic protocols that preserve user anonymity on blockchain networks, exposing user identities and transaction histories.
Devastation Scale: Moderate to Severe
The level of impact depends on the preparedness of the blockchain industry:
Short-Term Effects (5-10 Years) If quantum supremacy arrives suddenly, the lack of immediate mitigation could result in the theft of assets, collapse of trust, and disruption of major cryptocurrencies.
Legacy blockchains like Bitcoin and Ethereum would be particularly vulnerable, as they are built on non-quantum-resistant cryptographic protocols.
Long-Term Adaptation
- Quantum-Resistant Algorithms: Post-quantum cryptography is being actively developed. Transitioning blockchains to quantum-resistant cryptographic standards could mitigate most threats.
- Network Hard Forks: Major blockchain networks may need hard forks to upgrade cryptographic foundations, which could cause temporary instability but ensure long-term resilience.
- New Quantum-Secure Blockchains: Emerging blockchains could be designed from the ground up to be quantum-resistant, potentially replacing or coexisting with legacy systems.
QWID is the first native Q-Secure BC. The Founders, academics and crypto-native-startup-savvy techies have a strong belief that Crypto adoption will forever trail the security concerns of the industry, both current and impending. It was determined that a feature-rich, fast, secure, decentralized, and stable BC could only be improved upon by a ground-up approach using new ideas and building upon combinatorial best-breed solutions that exist today. Until Quantum-Networks help resolve the BC trilemma, only a PQC (Post-Quantum Cryptography) approach would allow for future-proof security while maintaining optimum performance characteristics and the broadest functionality. When Quantum Computers break current cryptography QWID will continue to offer BC solutions with zero compromise, allowing any Coins already Bridged to weather the disruption. The Founders see QWID as prescient, critical infrastructure to help keep the fundamental tenets of Cryptocurrencies (immutability, security, and decentralization) paramount in the face of Quantum Supremacy.