Quantum computing is developing exponentially. This technology can solve problems that are unmanageable for even the most powerful classical computers. As these advancements accelerate, the risks for Bitcoin’s security rise by the minute.
In a conversation with BeInCrypto, Naoris Protocol CEO David Carvalho explained that quantum computers will one day be able to break current encryption algorithms, rendering even the most secure wallets breachable. According to him, this reality is imminent, and the crypto industry should have started worrying about it long ago.
Unlocking Unprecedented Computational Power
Quantum computing represents a groundbreaking area of technology that harnesses the unique principles of quantum mechanics to tackle computational challenges far beyond the reach of traditional computers.
While still in its developmental stages, this field promises to unlock solutions for incredibly complex problems, performing calculations with speeds that current machines cannot match.
This new frontier in computing is poised to transform sectors ranging from medicine to cryptography. As a result, it’s also very bad news for Bitcoin and the crypto industry at large.
How Does Quantum Computing Endanger Current Cryptography?
Quantum computing presents a major threat to current cryptographic methods by efficiently solving complex mathematical problems that underpin their security.
Modern public-key cryptography, including RSA encryption and Elliptic Curve Cryptography (ECC)—used by Bitcoin—relies on the extreme difficulty of classical computers to solve these problems.
Shor’s algorithm, developed by American computer scientist Peter Shor, poses a significant threat because it can efficiently solve the complex mathematical problems that prop up these modern encryption methods.
This means a powerful quantum computer running Shor’s algorithm could swiftly figure out the hidden numbers that protect RSA or crack the intricate calculations used in ECC.
“It’s not just Bitcoin. Ethereum and most blockchains today rely on Elliptic Curve Cryptography (ECC), and quantum will shatter that. It’s simply mathematics. Anything that relies on cryptography is at risk – institutions, military, banks, you name it. In a world where ‘whoever breaks the math owns the future,’ cryptography is the new geopolitical weapon,” Carvalho told BeInCrypto.
While today’s quantum computers can’t yet break current encryption, this threat could become a reality within the next decade.
The Race Against Time: Securing Bitcoin’s Future
According to experts like Carvalho, developing quantum-resistant cryptography is crucial for Bitcoin’s survival in a post-quantum world. This objective should be a top priority for the industry, as time is of the essence.
“Experts predict that ‘Q-Day’– the day quantum computers are able to break current encryption algorithms – will come within the next five-to-seven years, but it could be sooner. Some even think it’s here already and we just don’t know about it yet. But the important thing to understand is that we’re not talking about a distant threat – quantum is coming for Bitcoin like meteors came for the dinosaurs,” he said.
Hackers might already be collecting existing data, planning to use it for attacks once quantum computing becomes available.
“The worst thing about quantum attacks is that they’re retroactive. So every single transaction ever recorded on the Bitcoin blockchain is at risk of being compromised, regardless of when it happened, and this data is available for bad actors to harvest now. And you can bet this is exactly what they’re doing in preparation for when quantum tech is advanced enough to break Bitcoin,” Carvalho added.
When the time arrives, whether a user’s Bitcoin is held in cold storage will no longer matter. For Carvalho, securing every node, transaction, and device is the sole solution to shield them from these losses.
“The only way to protect against this is to transition to post-quantum cryptography, which means upgrading all signature algorithms at the protocol level, which would make it unbreakable by quantum attacks. It is possible, but it really needs to happen now, not in some distant future,” he said.
This reality will also extend to other corners of society. Industries like global banking, secure communications, and other critical infrastructure will also be impacted.
Beyond Bitcoin: A Universal Security Threat?
While the threat to Bitcoin is a prominent concern, quantum computing’s impact extends far beyond, posing a fundamental risk to virtually all aspects of digital security.
“Quantum has the capability to break all cryptography everywhere at the same time. That includes banking, secure comms, everything. It’s a national security issue, a financial stability issue, and most of all, a trust issue. Organizations recording encrypted data today already possess the means to decrypt it tomorrow – they’re just waiting for quantum capabilities to mature,” Carvalho told BeInCrypto.
In global banking, quantum computers could compromise financial transactions, leading to fraud, theft, and a collapse of trust, especially as collected financial data could be decrypted later.
For secure communications like HTTPS, VPNs, and email, quantum attacks could enable the interception of private messages, spoofing of identities, and undermine privacy. Similarly, critical infrastructure like power grids and transportation systems face risks of catastrophic cyberattacks if their encryption is broken.
A Narrowing Window
Carvalho stressed that, while there is still time to act, that window is slimmer by the day. But once Q-Day arrives, there’s no going back. There will be no way to protect digital systems retroactively.
“The quantum threat to cryptography is now urgent, and we really don’t have any more time to waste. We can’t wait for regulations or rely on reactive responses. It just won’t work,” he said.
This is especially true for industries like crypto, which depend exclusively on these digital systems.
“The Web3 ecosystem, especially, must pay attention because it is entirely digital. It’s also progressive and should therefore lead the way on cybersecurity innovation, and resilience to quantum attacks is the one area of cybersecurity that truly matters right now,” Carvalho concluded.
How the sector prepares for this impending moment will be paramount to its survival.
Disclaimer
Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
