Cryptocurrency firms are developing plans to upgrade networks with quantum-resistant cryptography following advances suggesting quantum computers could break existing encryption sooner than expected.
Google’s research indicates quantum computers capable of breaking encryption could arrive by 2029, reports Reuters.
Today’s computers lack the power to work backward from a public key to uncover the private key that controls a wallet. Quantum computers could eventually change that, allowing bad actors to forge digital signatures and authorize transactions the real owner never approved. And because crypto transactions are final, with no bank or intermediary to reverse them, stolen funds would be unrecoverable.
Bitcoin is particularly vulnerable due to its 17-year history generating visible public keys, with estimates that 35% to 50% of its supply could be exposed.
“It’s the most direct and existential threat towards cryptocurrencies and crypto networks,” says Chris Tam, head of quantum innovation at BTQ Technologies.
Christopher Wood, head of equity strategy at Jefferies, in his January newsletter, unloaded a 10% BTC allocation from his model portfolio, citing the long-term “existential” threat of quantum computing.
Says Utkarsh Ahuja, managing partner at Moon Pursuit Capital,
“Crypto especially is uniquely exposed because blockchains are transparent and permanent.”
Plans include post-quantum signatures, though challenges like larger signature sizes and decentralized consensus remain.
The Ethereum (ETH) Foundation targets 2029 for full protection, while Algorand (ALGO) plans support for post-quantum accounts later this year.
None of the top 20 blockchains have implemented such algorithms yet.
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Cryptocurrency firms are developing plans to upgrade networks with quantum-resistant cryptography following advances suggesting quantum computers could break existing encryption sooner than expected. Google’s research indicates quantum computers capable of breaking encryption could arrive by 2029, reports Reuters. Today’s computers lack the power to work backward from a public key to uncover the private key
The post Quantum Computing Threat Prompts Crypto Firms to Prepare Post-Quantum Defenses appeared first on The Daily Hodl. Bitcoin, Blockchain, Crypto, News, quantum
This articles is written by : Nermeen Nabil Khear Abdelmalak
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