A recent report by Capgemini highlights the threat posed by quantum computers to existing cryptographic systems, including those used in Bitcoin.
Quantum Computers and Cryptography
The Capgemini report warns that public-key cryptographic systems such as RSA and elliptic curve cryptography (ECC) may become obsolete due to quantum machines. These algorithms secure wallet addresses and authenticate transactions on the blockchain. ECC is vulnerable due to Shor's algorithm, which can solve the discrete logarithm problem.
Post-Quantum Security
According to a survey of 1,000 large organizations across 13 countries, 70% of enterprises are either preparing for or already deploying post-quantum cryptography (PQC) solutions. However, only 15% of companies are considered 'quantum-safe,' with just 2% of cybersecurity budgets allocated to quantum risk solutions.
Risks for Bitcoin
More than 25% of all Bitcoins have at some point revealed their public key, putting them at risk if a significant quantum computer becomes operational. A recent Bitcoin Improvement Proposal (BIP), co-authored by Jameson Lopp and his team, outlines steps to protect the network. Specifically, users will be prohibited from sending funds to quantum-vulnerable addresses using a new 'quantum-safe' address format.
Quantum computing poses a potential threat to the cryptographic systems used in Bitcoin, necessitating measures to protect the network from possible attacks.
