Can Quantum Computers Hack Bitcoin / Ethereum?

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Quantum computers are coming online this year - and they might pose a threat to bitcoin, ethereum, and even modern cryptography. Find out what they can do and if this threat is real. 💪Donations: B...

AI Analysis

Quantum computers are on the horizon, and there's a big question mark hanging over whether they could potentially hack Bitcoin, Ethereum, and other cryptocurrencies, or even modern cryptography in general. This video dives deep into what quantum computers are, what they can actually do, and assesses just how real this quantum threat is to our digital wallets and funds.

Here's a breakdown of the key points:

* Understanding Quantum Computers: Quantum computers are fundamentally different from the classical computers we use today. Instead of relying on electrical circuits and using bits (ones and zeros), they leverage the quantum properties of atoms to perform calculations, utilizing "quantum states." These machines, like IBM's Q system, require extremely cold temperatures to function and remain stable, indicating their current experimental and primitive nature. Breakthroughs are happening, making them stable enough for initial calculations.

The Quantum Threat: Shor's Algorithm: The main concern stems from a specific algorithm called Shor's algorithm. Quantum computers running this algorithm could* potentially break modern cryptography, including the cryptographic foundations of Bitcoin and Ethereum.

Cryptocurrency Basics: Public and Private Keys: To understand the threat, it's crucial to grasp how cryptocurrency security works. At its core, crypto relies on a "key pair" – a public key and a private key. Unlike traditional banking where you are the most important person (you can prove your identity to recover an account), with cryptocurrency, the private key* is paramount. Anyone who possesses the private key has full access to the associated funds and can authorize transactions. Losing your private key means losing your funds, and if it's stolen, your funds are gone. Even when you create a wallet and get a 12-word backup phrase, that's essentially a part of or a clue to your private key, even if you don't directly interact with the full key.

* The Challenge for Classical Computers: Breaking a private key using classical computers is incredibly difficult, almost impossible. It would take millions or even billions of years for even the fastest supercomputers to "brute force" or guess a private key. This extreme difficulty is the basis of modern cryptography, securing everything from websites to credit card transactions.

* Quantum Computers Change the Game: This is where quantum computers pose a theoretical threat. If a quantum computer could run Shor's algorithm fast enough, it could potentially figure out a private key in a "reasonable amount of time," a stark contrast to the millions of years for classical computers. This capability is what fuels the fear that quantum computers could siphon funds from Bitcoin and Ethereum accounts.

* Current Limitations: Still Primitive and Experimental: Despite the buzz, quantum computing technology is still in its very early stages. The machines are complex, hard to maintain, and extremely experimental. Even with significant investment, the core research and development takes time. The first quantum computers coming online this year are nowhere near fast enough to use Shor's algorithm to hack into Bitcoin or Ethereum wallets in any practical timeframe. They are currently at a "proof of concept" stage, showing that the idea works for small calculations, but not for full-scale computation.

* The Timeline for a Real Threat: Most estimates suggest it will be around 15 years before quantum computers are powerful enough to realistically threaten modern cryptography and cryptocurrencies. This is a significant amount of time, especially in the rapidly evolving world of crypto.

* Crypto's Ability to Adapt and Evolve: The good news is that cryptocurrencies are not static; they can change and upgrade. In fact, Bitcoin was designed with the quantum threat in mind, and extensions can be built to make it "quantum resistant." Fifteen years is more than enough time for the crypto community to develop and deploy solutions. There are already solutions in development, including new "quantum-resistant" coins that use different algorithms specifically designed to withstand quantum attacks.

The Presenter's Takeaway: While quantum computers do pose a theoretical threat to cryptocurrencies, this threat can be effectively negated* by ongoing network upgrades and the implementation of quantum-resistant cryptography. There's no immediate danger of funds being stolen by quantum computers, and the industry has ample time to prepare. The presenter sees this as an exciting and interesting area for further exploration, rather than a cause for immediate fear.

Transcript

Hey everyone, my name is Michael and today I'm going to explain to you guys the quantum threat to Bitcoin, Ethereum and other cryptocurrencies. You might have heard that this year quantum computers are stable enough to be switched online and operating. And you might have also heard that quantum computers can even break modern cryptography. And that applies to Bitcoin and Ethereum as well. In fact, there is also this fear going around that perhaps quantum computers can even break into our wallet...