Quantum Computers Put Blockchain Security at Risk

November 20th, 2018

Disclosure: I am long Quantum Resistant Ledger (QRL).

Via: Nature:

By 2025, up to 10% of global gross domestic product is likely to be stored on blockchains. A blockchain is a digital tool that uses cryptography techniques to protect information from unauthorized changes. It lies at the root of the Bitcoin cryptocurrency2. Blockchain-related products are used everywhere from finance and manufacturing to health care, in a market worth more than US$150 billion.

When information is money, data security, transparency and accountability are crucial. A blockchain is a secure digital record, or ledger. It is maintained collectively by users around the globe, rather than by one central administration. Decisions such as whether to add an entry (or block) to the ledger are based on consensus — so personal trust doesn’t come into it. Any party inside or outside the network can check the integrity of the ledger by making a simple calculation.

But within a decade, quantum computers will be able to break a blockchain’s cryptographic codes. Here we highlight how quantum technology makes blockchains vulnerable — and how it could render them more secure.

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