Is Bitcoin at Risk? Has the Age of Quantum Hacking Begun?

Three years ago, on February 4, 2022, I published my first article in which I anticipated an upcoming column on quantum computing and its impact on blockchain technology.

This analysis raised concerns, especially among those working on blockchain-based projects. However, not everything is cause for alarm, and not everything is as it seems.

Recently, a team of Chinese researchers conducted an experiment that has shaken the tech community. Using an advanced quantum computer, they managed to break the Elliptic Curve Digital Signature Algorithm (ECDSA), which is key to Bitcoin's security, in just 320 seconds. This event, considered the first successful quantum attack on Bitcoin, brings to the forefront the vulnerability of current cryptographic systems in the face of quantum computing advancements.

To understand the magnitude of this event, it's important to grasp the differences between classical and quantum computing. While traditional computers process information in bits that can be in either a 0 or 1 state, quantum computers use qubits, which can represent both states simultaneously due to quantum superposition. This allows them to perform calculations exponentially faster compared to conventional systems. Another key property of quantum computers is quantum entanglement, which allows two qubits to be correlated regardless of the distance between them, potentially revolutionizing the way data is transmitted and processed.

The experiment conducted in China has shown that current digital security techniques could become obsolete much sooner than expected. Elliptic curve cryptography, on which many blockchains are based, was compromised using advanced quantum factoring techniques, suggesting that, with sufficient computational power, private keys of Bitcoin wallets could be extracted from their public keys.

This would represent a critical risk to the security of digital assets and the functioning of blockchain networks.

Despite this alarming development, the tech community is already exploring solutions. One of the key strategies to protect the integrity of blockchain is migrating to post-quantum cryptography. This new type of encryption is designed to be resistant to attacks from quantum computers, ensuring that current systems can continue to operate with security guarantees in the future. Algorithms such as hash-based signatures, lattice-based signatures, and error-correcting code-based encryption schemes are all being developed to withstand quantum attacks.

Among the proposed solutions to mitigate the quantum threat are blockchain forks, which would allow for a controlled transition to quantum-resistant encryption algorithms. Additionally, new digital signatures that are not vulnerable to quantum factoring are being researched, ensuring that blockchain transactions remain secure even when quantum computers reach more advanced levels of development.

Despite the challenges, quantum computing not only poses risks but also presents opportunities. Its immense processing power could be used to enhance the efficiency of smart contracts, optimize consensus mechanisms, and develop new digital security models. Instead of being seen solely as a threat, quantum computing could become an ally in strengthening blockchain technology. Furthermore, quantum cryptography, based on physical principles rather than mathematical ones, could make transactions virtually impossible to intercept or falsify.

The way forward will be crucial in defining the future of digital security. Blockchain networks that adopt preventive measures and move toward post-quantum cryptography will have a significant advantage in protecting their assets and users. As quantum technology continues to evolve, adaptation and innovation will be essential to maintain trust in decentralized systems.

We are at a critical point in the history of computing, where the convergence of quantum computing and blockchain could radically transform digital security.

The challenge now is to anticipate these changes and ensure that today's technological solutions are capable of withstanding the advancements of the future. Some solutions were proposed in the 2022 article, where I also argue that we are not facing the end of blockchain, but the beginning of a new era in which digital security must evolve alongside quantum computing to ensure its long-term survival.

Lic. Pagano Monica Elizabeth

Author

Monica Elizabeth Pagano, Lic. PropTech | Blockchain | Technology | Research Consulting & Business Services ?? Blockchain, Tokenomics & Real Estate (2024) ?? RWA: Real World Assets - Guide to Tokenizing an Asset (2024)

Invest in Knowledge, Be Part of the Future

If you want to gain an in-depth understanding of how tokenization is transforming the real estate market and how these solutions are redefining access to real estate investment, we invite you to discover Blockchain, Tokenomics, and Real Estate. In its pages, you will find a detailed analysis of this evolution and how you can leverage it to your advantage.

Don’t fall behind in this revolution. Get your copy and prepare to be part of the future of real estate investment!

???? Universities in Europe and Latin America have already incorporated this book into their libraries!

?? Our mission: We want you to truly learn—straight to the point and without unnecessary costs. Subscribe to our YouTube channel, follow our podcast, and join our newsletter on LinkedIn. Everything is designed to provide you with practical, real, and up-to-date tools.

We invite you to dive deeper into this revolution with our specialized publications:

1) Blockchain, Tokenomics & Real Estate Vol. I introduces advanced concepts on blockchain and tokenized real estate.

Index, Summary, and Chapters

AMAZON

DIGITAL

2) RWA – Real World Asset: Guide to Tokenize an Asset is a simplified summary of Volume I, presenting fundamental concepts and the innovative Token Genesis framework.

Index, Summary and Chapters

AMAZON

DIGITAL

Did you know that people read us all over the world? ?? From the United Kingdom, France, and Italy to the United States ???? This is your time to learn! ??