Opinion by: David Carvalho, founder, CEO and chief scientist of Naoris Protocol
Transforming Money through Decentralization
Satoshi Nakamoto revolutionized the concept of currency by creating a decentralized financial system using elliptic curve cryptography in response to the 2008 financial crisis, where many lost faith in traditional institutions.
The Quantum Threat
In its 16-year history, Bitcoin has never faced a hacking incident. However, this could soon change with the rise of quantum computing, which poses the most significant threat to Bitcoin since its inception.
Advances in Quantum Computing
Quantum computers, once thought to be purely fictional, have made considerable strides, with experts like Michele Mosca suggesting they might be capable of undermining Bitcoin’s cryptography in as little as a year. Government agencies are working on adopting quantum-safe standards by 2030, but the Bitcoin community seems to be mostly stuck in theoretical discussions.
Vulnerability of the Bitcoin Ecosystem
With innovations like Microsoft’s Majorana chip accelerating the development of practical quantum supercomputers, the current state involves around 100 quantum devices globally, which are projected to reach 5,000 by 2030. This evolution presents a danger to classical cryptography methods, putting at least 30% of Bitcoin at risk due to their reliance on vulnerable algorithms.
Preparing for ‘Q-Day’
The term “Q-Day” refers to the moment when quantum computers can effectively breach traditional cryptographic security. Once that day arrives, past Bitcoin transactions may become susceptible due to the transparency of the blockchain, while malicious actors prepare for this potential breach by gathering encoded data today.
A Call for Action
Transitioning Bitcoin to post-quantum cryptography is a complex challenge that may necessitate unpopular hard forks, risking network fragmentation. However, alternative strategies such as hybrid solutions and layered security models could fortify Bitcoin’s defenses without disturbing the base layer. Time is of the essence, and action must be taken to ensure Bitcoin’s longevity in a post-quantum world.
Opinion by: David Carvalho, founder, CEO and chief scientist of Naoris Protocol.
This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
