Quantum computing raises concerns about the future of blockchain technology, says Maximilian Schmidt of CPI Technologies.
Quantum computing has raised concerns about the future of cryptocurrencies and blockchain technology in recent years. For example, it is generally assumed that sophisticated quantum computers will one day be able to crack current encryption. This would make the issue of security a serious concern for blockchain users. What potential dangers lurk here? What advantages does this innovation bring? And what does the future of blockchain technology look like?
Quantum computers, a threat to the crypto-economy
Security is the top priority of blockchains. Strict rules control the process of controlling individual “nodes”, i.e. the users who control and validate transactions. However, technology is constantly changing in other areas as well, and new developments can cause encryption systems to break. The Japanese company Fujitsu recently developed the fastest quantum computer simulator in the world. Together with the RIKEN research institute and other technology companies, the company has set itself the goal of commercializing a quantum computer in 2023. However, this innovation could endanger the crypto market: systems of encryption that was previously considered secure could be hacked. For example, the SHA-256 cryptographic protocol used for Bitcoin is considered unbreakable. The reason is that today’s technology is not able to crack the security protocol – at least not in a human lifetime. Quantum computing could pose a threat here in the near future. Rapid development may soon contribute to the hacking of encryption systems. If the blockchain mechanism is disabled, it will no longer be possible to detect and stop hackers in time.
The development of blockchain technology
In addition to quantum technology, blockchain technology itself is also making continuous progress and preparing for attacks based on quantum computing. Developments in the field of risk prevention are progressing, with for example research on secure quantum cryptographic encryption algorithms. Their goal is to support Bitcoin and Co protocols. In all likelihood, the algorithms would withstand even Fujitsu’s quantum computer. Because even that would take a thousand years to crack such an encryption algorithm. In cooperation with the American bank JPMorgan, Toshiba is currently working on a corresponding quantum key distribution. This can protect against fraud by quantum computers.
Advantages of supercomputers
Quantum computers are considered the next generation of computers that will usher in the golden age. The computer company IBM presented its quantum computer “Quantum System One” in Germany last year. It is the first commercial quantum computer to be made in Europe and is intended to advance local research. With the supercomputer, conventional computers can be replaced with faster performance. Fujitsu and RIKEN also want to make remarkable progress with Japan’s first quantum computer. As early as 2011, they developed high computing power with the fastest computer system »K Computer«. Today, with quantum computing, an important step in the world of computing is to be taken. Fujitsu CTO Mahajan points out that quantum computers will help solve more complex problems in many fields such as finance, medicine or molecular dynamics.
In the field of computing, quantum technology is the future and can revolutionize many sectors in the future. However, it can also become a threat to blockchain security. Because quantum computers have the ability to decode the mechanisms, which makes it easier for fraudsters to gain access. But blockchain technology is currently under constant development and working on new encryption algorithms. However, it is not certain that it will do so before the arrival of new quantum computers. It is also undisputed that supercomputers represent enormous progress. Medicine, molecular dynamics and others could develop even further with the help of quantum technology. The benefits outweigh the negatives. Nevertheless, blockchain technology must keep pace in the future so that it does not disappear into the shadow of quantum computers.
is CEO of CPI Technologies. The company develops, among other things, an NFT-based digital identity and specializes in software development in the areas of blockchain, finance and AI as well as marketing and fundraising.