Currently, cryptographic protocols used to secure networks such as Bitcoin and Ethereum are highly secure and cannot be breached even by the most advanced computers. However, it is possible to imagine a scenario in the near future where computers are so advanced that the current cryptographic standards may become inadequate.
There is a looming threat posed by quantum computers – a state-of-the-art technology that has the capability to breach numerous encryption protocols utilized in cryptocurrencies at present. Even though quantum computers are still in their early stages and lack the necessary power to carry out such an attack, specialists anticipate that by 2030, if the current trajectory persists, they could pose a risk to blockchain networks.
The Quantum Resistant Ledger (QRL) is taking a proactive approach towards the doomsday threat posed by advanced quantum computing. It aims to become the world’s first post-quantum store of value and decentralized communication network.
The Quantum Threat to Cryptocurrency
Before delving into how QRL offers a solution to the quantum threat to cryptocurrency, it is important to understand how quantum computers work and the current risks associated with popular blockchains such as Ethereum and Bitcoin.
What Is Quantum Computing?
They are a type of supercomputer that outperforms classical computers in terms of processing power. Unlike traditional computers, they can perform multiple computations while simultaneously considering various configurations, making them exponentially faster.
In recent years, quantum computing has made remarkable advancements in several areas, such as AI, medical research, and weather forecasting. Nevertheless, if it falls into the wrong hands, quantum computing could pose a significant threat to cybersecurity and consequently, cryptocurrencies too.
As an instance, Google’s Sycamore processor with 54 qubits accomplished a computation in just 200 seconds, which would have required 10,000 years for the most potent classical computer in the world. As per IBM’s report, it is theoretically possible to solve cryptographic protocols within a few hours using quantum computers.
Types of Quantum Attacks
Broadly speaking, traditional cryptocurrencies face two primary types of threats, which are:
- Storage Attacks: An attack that targets individual wallet addresses, trying to break their security and steal the cryptocurrency stored in them.
- Transit Attacks: An attack that focuses on taking control of all transactions happening in real-time on the network.
Vulnerabilities of Existing Cryptocurrencies
According to a recent Deloitte study, Ethereum is more susceptible to storage attacks than Bitcoin. The study found that approximately 65% of all Ether is at risk of quantum attacks, which is significantly higher than the 25% of Bitcoin that is vulnerable.
Executing transit attacks is a difficult task that requires a high level of expertise. In fact, Mark Webber from the University of Sussex in the UK states that breaking this level of encryption would necessitate a quantum computer with 1.9 billion qubits of power, making it an even more severe challenge.
The difference in qubits between Ethereum’s quantum computer and IBM’s most advanced one is quite significant, with Ethereum’s having 2,048 qubits and IBM’s only having 127. Vitalik Buterin, the creator of Ethereum, commented in a tweet from 2019 that current speculations about quantum computing are far from actual quantum computing, comparing it to the difference between hydrogen bombs and nuclear fusion. However, the rapid advancements in AI-assisted technology may be altering the future of quantum computing and accelerating its timeline.
QRL’s Quantum-Safe Blockchain Technology
RSA and elliptic curve cryptography (ECC) are traditional cryptographic methods that rely on computational complexity for security. However, they are not a viable long-term solution since quantum computers can easily solve these methods. QRL addresses this vulnerability by developing a cryptography system that is based on problems that are believed to be immune to quantum attacks. This approach provides enhanced security in the quantum era.
QRL’s cryptography relies on the eXtended Merkle Signature Scheme (XMSS) as a crucial component. XMSS is a special mathematical function that ensures secure and efficient transaction authentication, taking into consideration the advancements in quantum computing.
In addition to securing transactions, QRL leverages advanced techniques such as on-chain lattice key storage and layer-to-internode communication to secure communications on the blockchain.
The Road Ahead For QRL And The Cryptocurrency Industry?
As quantum computing continues to evolve, investors and centralized organizations have the chance to shift towards quantum-resistant cryptography. However, decentralized blockchain technology faces a different scenario. Post-quantum security experts argue that this technology has a fatal and unfixable flaw. QRL, on the other hand, is said to be free from this issue, making it a pioneer in the post-quantum security realm. As such, it is well-equipped to provide a secure means for transactions and communications in a post-quantum world.
