Cryptocurrency and Quantum Computing

Currently, the IT industry is developing a breakthrough technology that will surpass any computer equipment by millions of times. The firms’ efforts are focused on two areas: gadgets for solving the same problem and universal computers on qubits.

After the commercial release of IBM’s quantum supercomputer in 2018, players in the cryptocurrency sector expressed serious concern about the harm that devices based on this technology can cause. The bitcoin sphere and the quantum computer don’t work well together, it’s a reality. The cryptographic ciphers used in the current blockchain protocol are susceptible to a force that could hypothetically learn to crack them easily. Quantum computing takes only a fraction of the time that a normal computer would take.

The most commonly used algorithms in the bitcoin industry are RSA and ECC, which were included in the list of 12 algorithms at risk, which the American Institute of Modern Science provided in 2019. As a result, new encryption methods are already being implemented.

The work of quantum computers

A bit, the smallest unit of information, can have only one of two values in a binary environment, as normal PCs work: either 0 or 1. All data is provided for this version of sequential calculus. Solving a complex mathematical equation on ordinary computers takes a lot of time.

A traditional computer takes years to complete the operation of sequential sorting of combinations. A qubit processor completes calculations in a nanosecond or less.

Principles of operation

Qubits function in a unique way. Their work creates a matrix of alternatives from all potential answers, with the most likely option being the best. There are several types of qubits, including:

1) Superconducting. 2) Refueling. 3) Ion trap. 4) Quantum dots.

The ability to produce multiple qubits is now achievable thanks to technological progress, but the instability of the system presents a problem. The number of computational errors increases as the number of threads used increases. Qubits, which are superconducting, should be cooled to about -273°C. These are extremely powerful magnets that hold the atom in superposition in ion traps. Complex systems require a lot of energy to function in both scenarios.

The danger posed by cryptocurrencies

Qubits provide millions of times faster problem solving than modern computers. Blockchain is in danger from many points of view:

1) A 51% consensus on the attack is a crucial component of the block chain because it verifies transactions. Other nodes in the network reject information that the attacker enters incorrectly. This can cause concern if a hacker seizes control of more than half of the network blocks. The speed of calculations should theoretically increase the likelihood of this kind of attack. 2) Open source keys. The consumer uses his address to transfer bitcoins to another individual. Using the private key, the recipient unlocks the transaction. The public key of the blockchain prevents this, just as knowing someone else’s email address does not give you access to their account. However, it is theoretically possible to hack wallets using reverse conversion if you calculate in qubits.

Bitcoin developers are working on switching to new encryption methods, as are government organizations that may suffer from hacking.

Shor’s algorithm and cryptography

Encryption is the process of converting data into a string of characters that can only be read by the owner of the key. Working prototypes made from hundreds of qubits are now available and can accomplish this task in a few years.

The complexity of the inverse transformation, which is determined by iterating through all potential combinations, determines reliability. For example, the SHA-256 algorithm encrypts data in such a way that millions of years are required for gradual decryption.

However, the Shor method has greatly simplified the solution of these problems, which poses a serious danger to open encryption in cryptographic systems. especially for the blockchain, where the private key is converted to create a wallet address.

The Impact of quantum computing on Cryptocurrencies

The study of new encryption methods that privacy projects may switch to in the future is the result of an analysis of the dangers associated with the proliferation of express accounts.

As the cryptocurrency market grows, it is extremely important to realize that blockchain networks that facilitate such transactions are subject to quantum attacks. The algorithms of Shor and Graver are two mathematical methods that are important in the future. Large prime numbers make it easier for computers to perform the fundamental operation of public key cryptography, which allows them to decrypt data and decrypt encryption. The entire sector will switch to new reliable methods of data protection even before a quantum computer for bitcoin is developed.

Public key

Hackers need a wallet address to perform reverse conversion. You can get it in one of two ways:

1) Decrypt the hash data of the block chain. 2) Collect data from the blockchain.

The client uses the private key to confirm the transfer after viewing all transactions in the registry. As a result, the system understands that the owner has started the process. You can cancel the conversion and get a private key if your wallet address is made public when transferring money using qubits. A quantum computer can crack bitcoin in a couple of minutes, if it takes a long time on a traditional PC due to the slow pace of selection.

Conclusion

Blockchain networks used public keys that were used as transaction addresses when cryptocurrencies first appeared. These transfers are affected by the hacking-oriented Shor algorithm. This means that attackers using the most powerful computers can gain access to coins stored at any of these addresses. A hash of a public key that splits a public address into parts using a one-way cryptographic algorithm is a new type of blockchain transaction. The computing device cannot get immediate access to the public key from the blockchain, which makes it impossible to decrypt the data.

In an effort to surpass supercomputers, Google announced the availability of a 150-qubit machine. However, there is only one impractical example that has been used to illustrate this ability to solve problems faster than anyone else. In addition to the qubits themselves, a massive infrastructure of systems and applications that have been developed for more than a year will be required, so it is premature to talk about the beginning of a new era in IT.

Read more articles about cryptocurrencies and mining at COOL-MINING.ORG.

Do you like to read similar articles about cryptocurrencies and mining, do you want to support me as an author or ask questions? Be the first to know the news, subscribe to my telegram channel CRYPTO WIKIES | Bitcoin & Altcoins Mining