Since Google announced that they have developed a quantum computer, there has been unrest in the crypto market. The new computer would be so powerful that it could put a bomb under Blockchain, Bitcoin and other encryption, such as wallet security. Is this fear well-founded and what is quantum computing anyway? We went to investigate.
What are quantum computers?
The regular computers we know work with bits (the known zeros and ones). To put it simply, current computers can either process combinations with zeros or combinations with ones. The new computers are not working with bits but with qubits. This allows combinations with zeros and/or ones to be processed. Google announced that they have developed such a quantum computer. To give you an insight: Google's 54 qubit computer can perform a calculation that the most powerful regular computer would take 10,000 years to complete in 200 seconds.
What is the danger to Blockchain and Bitcoin?
As you know, the transactions of e.g. the Bitcoin are stored on a Blockchain and a batch of transactions must be approved by solving a mathematical problem. This is called mining. The computer that solves such a calculation the quickest can approve the block and gets a number of crypto coins as a reward. When a quantum computer is used, regular computers do not stand a chance. Moreover, there is no point in making the mathematical task more difficult if there is more interest. Given the superpower, every level of difficulty that can be created is a piece of cake.
There is a danger that one quantum computer will be able to approve all the blocks on the Blockchain. This creates the risk of fraud, which is comparable to what is known as a 51% fraud.
Encryption with a quantum computer is also child's play. This makes it very easy for malicious parties, for example, to crack cryptowallets and appropriate the contents of the cracked wallets.
How real is the threat?
The good news is that quantum computers are still in the laboratory phase. Experts estimate that it can take at least another ten to a maximum of decades before the threat is real. This offers an opportunity for the crypto industry to come up with countermeasures. So, as a user, you don't have to be frightened by scare stories, but the industry needs to take action.
