“Quantum computing is evolving faster than anticipated,” says Chainalysis.
For the firm, there may be both challenges and opportunities for the cryptocurrency industry.
In a new analysis, digital asset research firm Chainalysis highlighted how long it is until quantum computing could impact the cryptocurrency industry.
“Google’s recent advance in quantum computing brings quantum threats closer to reality, but we are still 5 to 15 years away from quantum computers that could breach current cryptographic security,” projection.
For the firm, developments in quantum computing, including the recent experiment from Google that demonstrates processing speeds 13,000 times faster than traditional supercomputers, highlight the rapid progress in this field.
“While these advances do not pose an immediate threat to the security of cryptocurrencies, they do point to a clear trend: quantum computing is evolving faster than anticipated, and the crypto industry must address both the challenges and opportunities this presents,” Chainalysis noted.
In his opinion, although some headlines predict a catastrophic future for blockchain security, a more considered observation reveals that Preparation, not panic, will define the quantum future of cryptocurrencies.
Why is quantum computing important for cryptocurrencies?
Quantum computers can solve certain problems exponentially faster than classical computers. In this sense, this implies risks for cryptocurrencies, since they depend largely on cryptographic algorithms, as reported by CriptoNoticias.
Both Bitcoin and Ethereum use ECDSA (elliptic curve digital signature algorithm) for digital signatures. “The quantum threat to these systems is diverse,” Chainalysis warned. He detailed that Shor’s algorithm could solve his calculation and violate it, exposing the private keys derived from the public ones.
This threat is particularly serious because private keys are the basis of cryptocurrency ownership and security. A private key grants full control over a user’s digital assets; Whoever owns it can authorize transactions and transfer funds. If a quantum computer could derive private keys from exposed public keys, it would fundamentally compromise the security model underpinning cryptocurrency systems.
Chainalysis, digital asset ecosystem research firm.
According to their analysis, current estimates suggest that violate the cryptographic security of Bitcoin would require between millions and billions of quantum bits stable (qubits), a quantity much higher than current capabilities.
“There are still significant technical hurdles before quantum computers pose a direct threat to the security and integrity of cryptocurrency networks,” he warns.
Major technical limitations include hardware scalability challenges, high error rates in current quantum systems, the need for significant advances in quantum error correction, and environmental stability requirements for quantum systems.
The first bitcoin addresses are at stake, warns Chainalysis
The research firm specifies that the pioneering addresses of BTC and ether (ETH) represent greater vulnerability to quantum computing. This includes the holdings of Satoshi Nakamoto, as the anonymous creator of Bitcoin is known.
“While many modern Bitcoin addresses keep the public keys hidden behind a hash function until they are spent, the first Payment to Public Key (P2PK) addresses, common in the early days of Bitcoin, exposed the public keys directly, making them vulnerable to quantum attacks,” he elaborates.
Therefore, Chainalysis is blunt on the matter: “Given that Satoshi Nakamoto and other pioneer miners likely used P2PK addresses, a significant portion of early Bitcoin holdings could be at risk.
In any case, it stands out that the Bitcoin and Ethereum communities are actively developing solutions, including new types of addresses and signature schemes resistant to quantum computing.
In your eyes, with coordination, there may be a “seamless transition” to quantum computing-resistant infrastructures without compromising security or regulatory compliance.
“While quantum computing poses future challenges for cryptocurrency security, the industry has time to prepare,” Chainalysis concludes.