Quantum Computers: A Looming Threat for Bitcoin?

On the 3rd of January 2009, Satoshi Nakamoto presented the world's first-ever cryptocurrency powered by blockchain technology, In a small document called the 'white paper', an outline was quickly made as to how bitcoin and blockchain functioned. However, technology develops rapidly. Can this 13-year-old technology really hold up against Quantum Computers?

To answer this question, we have to take a closer look at the history of computing. Then, we ask ourselves the question: is Bitcoin and has Bitcoin been upgradeable?

History Of Computing

In the 1940s, vacuum tube computers were invented. They were a big deal and managed to store an impressive 1 bit in a device that is only the size of a thumb.

Then, in the 1950s, the transistor was invented, bringing the game to a whole new level. It allowed 1 bit to be stored in a device that is the size of a fingernail.

In the 1960s, Integrated Circuits were invented, allowing thousands of bits to be stored on a device no bigger than a hand.

Lastly, in the 1970s, Silicone computer chips were invented, allowing thousands of bits to be stored in the size of a fingernail.

Why do we mention this? Because as each computer develops, the previous model becomes outdated.

Cat-Mouse Game

There has always been a cat-and-mouse game between hackers and the hacked device to either penetrate a system or protect it. The hacked, and more particularly the hacker, have both more processing power now, giving them an edge. Why does quantum have a much larger edge? Because one qubit represents any value between 0 and 1, it allows a lot of not-yet understood use cases.

As this game develops and understanding of behind the technology increases, Quantum Technologies will most likely render classic Silicone computer chips useless.

Bitcoin

Bitcoin comes into the game since blockchain technology requires more than 51% of all the processing power to hack it. It's a race on processing power, ultimately. Numerous people claim that there are algorithms that can withstand quantum attacks. On the other hand, many also claim that quantum attacks will not affect bitcoin because it can be updated.

Updating Bitcoin

For an update in the bitcoin protocol, 51% of people need to vote in favor of the update. But who are these 'people'? They are called bitcoin miners. Bitcoin mining is imperative. It bases itself on two things: difficulty and block reward (transaction fees and inflation). As the difficulty increases and block reward decreases, bitcoin becomes harder and harder to get.

Miners process transactions on the blockchain and are essential to having the blockchain running securely. They also have the power to update bitcoin.

** If you're interested in reading more about bitcoin mining, you can click here: Crypto Mining Made Simple**

The Quantum Problem

Bitcoin algorithms' must be constantly updated to remain ahead of quantum technologies. If the updates are not accepted and implemented, quantum technologies may be used to control cryptocurrency. Yet, adopting new updates hastily can lead to other unprecedented or overlooked issues.

Banks, on the other hand, require their own teams or agencies to take care of their security as the number of experts in the quantum industry remains limited. It is unlikely that most banks will receive quantum-grade protection.

The Solution

The ultimate solution is to stay ahead of the curve, keep yourself informed, and listen to experts. We believe that Bitcoin is more likely to survive as it's community-based and can adapt and evolve fast. That is by no means financial advice, just some food for thought.

We see two ways out: adoption or avoidance. Adoption would entail accepting and adopting quantum technologies to work on commercializing this technology. The second is avoidance, where we build technologies with algorithms that put quantum computers at a big disadvantage.