Quantum Computing vs. Bitcoin: Is Encryption Really at Risk?
The post Quantum Computing vs. Bitcoin: Is Encryption Really at Risk? appeared on BitcoinEthereumNews.com. Khushi. V. Rangdhol May 16, 2025 01:45 Quantum computing threatens Bitcoin long-term, but current risks are low. Solutions like PQC and hard forks are being explored. Introduction Bitcoin’s security is built on robust cryptographic foundations. At its core, the network relies on the Elliptic Curve Digital Signature Algorithm (ECDSA) to secure wallets and verify ownership, while SHA-256, a secure hashing algorithm, underpins the mining process and block verification. These technologies have proven resilient against classical computers, but with the rise of quantum computing, a pressing question emerges: Could a future quantum machine render Bitcoin’s encryption obsolete? The Risk to Bitcoin Wallets: ECDSA and Shor’s Algorithm The most immediate concern lies in ECDSA, the algorithm used to sign Bitcoin transactions. Bitcoin wallets operate using public-key cryptography, where a private key generates a corresponding public key. This public key, when hashed, becomes a Bitcoin address. When a transaction is made, the public key is revealed on-chain, and this is where quantum computers pose a threat. Using Shor’s algorithm, a sufficiently powerful quantum computer could, in theory, reverse-engineer the private key from the exposed public key. While this sounds alarming, the risk only materializes once a public key is broadcast—meaning that wallets that reuse addresses, especially from Bitcoin’s early days, are most at risk. In contrast, modern best practices that use a new address for every transaction remain relatively safe, as the public keys are not exposed until they are used. SHA-256, Mining, and the 51% Attack Misconception Another commonly discussed quantum threat is the possibility of a 51% attack, where a quantum computer could outperform all traditional miners and take control of the blockchain. This fear is often based on Grover’s algorithm, which can theoretically accelerate brute-force attacks on SHA-256 hashes. However, Grover’s advantage is only quadratic—it reduces the effective security of…
The post Quantum Computing vs. Bitcoin: Is Encryption Really at Risk? appeared on BitcoinEthereumNews.com.
Khushi. V. Rangdhol May 16, 2025 01:45 Quantum computing threatens Bitcoin long-term, but current risks are low. Solutions like PQC and hard forks are being explored. Introduction Bitcoin’s security is built on robust cryptographic foundations. At its core, the network relies on the Elliptic Curve Digital Signature Algorithm (ECDSA) to secure wallets and verify ownership, while SHA-256, a secure hashing algorithm, underpins the mining process and block verification. These technologies have proven resilient against classical computers, but with the rise of quantum computing, a pressing question emerges: Could a future quantum machine render Bitcoin’s encryption obsolete? The Risk to Bitcoin Wallets: ECDSA and Shor’s Algorithm The most immediate concern lies in ECDSA, the algorithm used to sign Bitcoin transactions. Bitcoin wallets operate using public-key cryptography, where a private key generates a corresponding public key. This public key, when hashed, becomes a Bitcoin address. When a transaction is made, the public key is revealed on-chain, and this is where quantum computers pose a threat. Using Shor’s algorithm, a sufficiently powerful quantum computer could, in theory, reverse-engineer the private key from the exposed public key. While this sounds alarming, the risk only materializes once a public key is broadcast—meaning that wallets that reuse addresses, especially from Bitcoin’s early days, are most at risk. In contrast, modern best practices that use a new address for every transaction remain relatively safe, as the public keys are not exposed until they are used. SHA-256, Mining, and the 51% Attack Misconception Another commonly discussed quantum threat is the possibility of a 51% attack, where a quantum computer could outperform all traditional miners and take control of the blockchain. This fear is often based on Grover’s algorithm, which can theoretically accelerate brute-force attacks on SHA-256 hashes. However, Grover’s advantage is only quadratic—it reduces the effective security of…
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