Get the scoop on finance - sign up for mobile alerts
Bitcoin
| On
June 29, 2020

Will Quantum Computing Bust Bitcoin (BTC)? World Economic Forum Analyzes Threat to Cryptography

By Daily Hodl Staff

The World Economic Forum says quantum computers have the potential to breach public-key cryptography, which is the mathematical process that helps keep the Bitcoin network secure.

At a World Economic Forum Centre for Cybersecurity’s Future Series meeting, cybersecurity experts explain how quantum computing may pose a serious threat to Bitcoin.

ADVERTISEMENT

“The sheer calculating ability of a sufficiently powerful and error-corrected quantum computer means that public-key cryptography is ‘destined to fail’, and would put the technology used to protect many of today’s fundamental digital systems and activities at risk.

The key exchanges, encryption and digital signatures that protect financial transactions, secure communications, e-commerce, identity and electronic voting all rely on mechanisms which would be made redundant in such a scenario.”

But before quantum computers can actually endanger the security of cryptocurrencies, more quantum information or qubits are required.

Earlier this month, industrial powerhouse Honeywell said it has developed the fastest quantum computer in the world with a quantum volume of 64. The metric represents the total number of the computer’s qubits and how well it handles them. In comparison, Google’s supercomputer scored 53 while IBM’s machine notched a score of 32.

ADVERTISEMENT

Dragos Ilie, a quantum computing and encryption researcher at Imperial College London, says quantum computers have a long way to go before they can start breaking into Bitcoin.

“In order to have any effect on bitcoin or most other financial systems, it would take at least about 1,500 qubits and the system must allow for the entanglement of all of them.”

&nbsp
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.