A new report from Ark Invest and Unchained says advances in quantum computing could eventually challenge Bitcoin’s (CRYPTO: BTC), cryptography, though the threat remains distant for now.
Quantum Computing Could Challenge Bitcoin’s Security
A report titled “Bitcoin and Quantum Computing” by ARK Invest and Unchained said current quantum machines remain far from powerful enough to break Bitcoin’s security.
Today’s systems operate in the Noisy Intermediate-Scale Quantum (NISQ) era, meaning they have limited computational power and high error rates, preventing them from compromising Bitcoin’s cryptographic protections.
Bitcoin’s security mainly relies on cryptographic hash functions and elliptic curve cryptography (ECC).
While hash functions are considered relatively resistant to quantum attacks, ECC could eventually become vulnerable if sufficiently powerful quantum computers are developed.
The report estimates that around 35% of Bitcoin’s supply sits in addresses potentially exposed to future quantum risks.
However, the analysis noted that millions of coins are likely permanently lost, and many others could be moved to more secure addresses if the technology threat emerges.
Post-Quantum Cryptography Could Protect The Network
Researchers said a powerful enough quantum computer could theoretically break cryptographic keys faster than Bitcoin’s 10-minute block time, which would require a protocol upgrade to quantum-resistant security.
Post-quantum cryptography is already being developed across the broader internet to defend against such threats.
Implementing similar protections in Bitcoin would likely require a complex network upgrade, given the decentralized governance of the protocol and its historically cautious approach to major changes.
The report concluded that a gradual technological development path would likely give the Bitcoin community enough time to adopt tested cryptographic solutions and maintain the network’s long-term security.
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