Blockchain vs Quantum Computer – Which Technology Will Win?

Quantum computers as a threat to blockchains

Advancements in computer technology could possibly be responsible for the hacking of blockchain cryptosystems. Blockchain technology uses the same encryption system as all other computer technologies. However, it is useful for very specific purposes, for example to allow secure exchanges between two parties who do not know each other. Quantum computers would not only be able to break blockchains, but also any secure and encrypted communication on the Internet. For example, external access to any email would be allowed. This would be fatal for blockchains. With blockchains, security is paramount. Users independently verify each transaction. This process of controlling each individual node – that is, a network element – is subject to strict rules. However, as soon as the blockchain mechanism is circumvented, hackers can no longer be identified in time and stopped in their actions. This would allow assets to be sent without the owner’s consent.

Japanese technology group Fujitsu recently developed the world’s fastest quantum computer simulator to date. The company is striving to realize this quantum computer and is collaborating with the RIKEN research institute and other companies. The first model should appear on the market next year. Such technology can pose a threat to blockchains. For a quantum computer like the Fujitsu Simulator, it would be easy to bypass blockchain security. One of the best-known blockchains, the Bitcoin blockchain, uses the SHA-256 cryptographic protocol. According to experts, it is unbreakable. The reason for this is that none of the current technologies on the market have been able to break through this protocol. However, future quantum computing most likely could.

Blockchain technology counteracts this

However, blockchain technology is just as scalable as computer technology. Research is already relentless on how to counter future dangers. Quantum-safe cryptographic encryption algorithms supporting the protection of Bitcoin and Co. protocols are currently under study. It would even take thousands of years for a quantum computer to break through. Japanese technology company Toshiba is working with major US bank JPMorgan on such a quantum key distribution. This is intended to protect against fraud caused by quantum computers. With the help of previous research, the crypto industry is gearing up to protect against quantum computing attacks.

Benefits of advanced technology

Quantum computers are a new generation of computing technology. In 2021, a model from IBM was presented in Germany – the “Quantum System One”. It is the first commercially used quantum computer in Europe. It is intended to advance research in Germany. “Quantum System One” has an advantage over conventional computers due to faster solutions. He could therefore replace them in the future. Similarly, Fujitsu and RIKEN also want to succeed in the future with Japan’s first quantum computer. Eleven years ago, high computing efficiency could be achieved with the fastest computer system “K Computer”. With new computing technology in the form of quantum computing, only one more step needs to be taken. Fujitsu CTO Vivek Mahajan says quantum computers will make a significant contribution to solving problems in many fields, such as finance and medicine.

The first German quantum computer

In Germany, too, advances in computer technology are increasing. In 2024, the introduction of a quantum computer based on cutting-edge German technology is planned. The so-called “Made in Germany” is to be developed by the joint QSolid project, which includes 25 German companies and research institutes. The Forschungszentrum Jülich is responsible for coordination. Financial support in the amount of 73.6 million euros has already taken place. The sponsor is the Federal Ministry of Education and Research. QSolid also focuses on error prevention methods using artificial intelligence, optimization by improving the quality of quantum bits and much more.

Conclusion

Computer technology is advancing rapidly these days. Quantum computers are being developed in all sorts of countries right now. Blockchain must now keep pace. With the help of quantum computers, the blockchain security barrier can in all likelihood be quickly circumvented. This would give hackers easy access. But at the same time, quantum technology also brings many benefits. In this way, problems can be solved in a wide variety of areas. And blockchain technology can also be supported. Overall, quantum computers are more of a blessing than a curse. Nevertheless, blockchain technology should stay on the ball so that it does not sink at some point.

Author: Maximilian Schmidt 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. https://cpitech.io/de/