Investing and trading cryptocurrencies can be very profitable despite market volatility, the current lack of clear regulations, and the ever present possibility of someone hacking your crypto exchange or your own crypto wallet. Fear of missing out is always a risk in the crypto world. And there is another risk on the horizon. Eventually there will be computers that can break the most sophisticated encryption. These will be quantum computers. Will crypto survive quantum computing? When should you be worried and what should you be doing now?
What Is Quantum Computing and What Does It Have to Do With Crypto?
As we noted in our article about the best quantum computing investments, quantum computing is developing at a rapid pace and will soon be able to work so rapidly that encryption algorithms that today would take thousands or even millions of years to break will be breakable in days. Quantum computing is based on quantum mechanics the branch of physics that describes the realm of atoms, subatomic particles, and photons of light. The point of this article is that quantum computing is going to be part of our lives in just a few years and anyone with investments that rely on encryption for security needs to be aware and take precautions. This includes everyone in the crypto world.
What Is the Quantum Risk for Crypto?
Your crypto wallet uses what is called elliptic curve cryptography to provide security. With today’s computers and programs it would take more than a hundred million years to break this type of encryption while it will likely take days with quantum computing when it comes of age in just a few years. The problem for the owner of a crypto wallet is that they have both a private and public key for their wallet. A quantum algorithm, called Shor’s algorithm, run by a quantum computer will be capable of deriving your private key from your public key. Having done that a hacker will be able to take your assets at will. It will be possible to prevent this from happening if you know what to do.
How to Keep Your Wallet Safe From Quantum Computing
Shor’s algorithm is able to discover the private key for your crypto wallet if it knows your public key. The safest way to protect your wallet from quantum computing using Shor’s algorithm is to never expose your public key by sending a transaction. If your crypto assets include Bitcoin you are at greater risk unless you keep your public key out of public view. According to experts, Ethereum and smart contracts that hide public keys are most likely safer for now than Bitcoin is. Over the longer run, there will have to be cryptography that is safe from quantum computing attacks but, for now, your best bet is to take steps to never have a public key that is used in transactions, which sort of defeats the purpose of using crypto for trading or lots of transactions!
Crypto Platforms Working to Protect Clients from Quantum Computing Hacks
Fortunately, all is not lost or in peril in the crypto world as quantum computing becomes a real life possibility. Cellframe, Hedera, Quantum Resistant Ledger, and Ripple all have or are currently putting online “quantum resistant” improvements. This is a potential problem today that could, without sufficient attention, could become a serious problem. It is useful in this regard to remember all of the panic with the “Y2K” worries as we approached the turn of the century and millennium on January 1, 2001. In the end sufficient attention was paid to the issue and there was no crisis. Just in case, dear crypto investor or trader, pay attention and take what precautions you can to protect your crypto assets.