Blockchain and Quantum Computing
Due to the complexity of this topic, we should first focus on what Quantum Computing is and the controversy behind it. Computers store and manipulate data in “Bits”, which are binary 0 and 1 states (there are also Ternary computers that calculate data in “Trits”, but that is another story). Quantum computers leverage quantum mechanics to compute data using “Qubits”. A Qubit can be a 1, 0, or both states at the same time. It’s quite a complex concept, so we will refer to the thought experiment of Schrodinger's cat as an example.
Schrodinger’s cat is a thought experiment dealing with radioactive decay but put simply, imagine a sealed box with a cat inside. Without looking inside the box, the cat could either be alive or dead. To the outside observer, the cat exists in two states at the same time. There are different interpretations of this experiment and some of them may confirm or debunk Quantum Computing.
- The Copenhagen interpretation means that the cat in the box stops being both alive and dead when observed but exists as both when unobserved.
- The Many-Worlds interpretation is that the cat is both alive and dead inside and outside of the box but when opened, two parallel universes are created in which one exists where the cat is living and another exists where the cat is dead.
There are other states in this thought experiment but these are the most prominent. Now entertain the idea that we live in a simulation, just as a character moves through a video game, reality is not rendered unless observed (in order to conserve computational power). In this scenario, Quantum states may only exist because the cat in the box has not been rendered yet. It may be futile to try and calculate things as being in multiple states when in reality, they will only be rendered into a state when observed. This would mean that Quantum calculations are in fact random and futile.
Many prominent companies are in the process of testing and developing Quantum computers such as Google and IBM. There is a fear that Quantum computers using Shor’s algorithm could break the encryption used to secure blockchains like Bitcoin. At the moment, it is stated that current quantum computers can only calculate up to 128 Qubits and that 1,500–2,000 Qubits would be required to break SHA-256 encryption. It may also be possible for Quantum computers to control the majority of Bitcoin’s hashpower, which could lead to double spending attacks and chain rollbacks.
Several organizations have been working to develop solutions to protect cryptography from the threat of Quantum computing. The NSA began work on Quantum resistant encryption in 2015 and the founder of Blockchain technology, David Chaum, released alpha versions of his quantum resistant blockchains Elixxir and Praxxis in 2019.
It is widely believed that it could take engineers from four to ten years to create a Quantum computer powerful enough to crack Bitcoin’s encryption. Some blockchain projects are working behind the scenes to upgrade their encryption, but this process is difficult and involves forking and possibly migrating to different wallets and private keys. We have to remember that all encryption is at risk here (if the threat of Quantum computers is real), so we will not be alone in this struggle. It is important to invest in projects with strong development teams that consider all threats to our ecosystem. A Quantum attack on Bitcoin for example, could steal private keys and destroy Billions of dollars in value. Governments could target and destroy any competing technologies or currencies and circumvent any privacy we thought we once had. If you are invested in this space, Quantum computing is definitely something you should keep an eye on. Consider supporting projects like Elixxir that are at the forefront of technology and are dedicated to preserving your anonymity and wealth.
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