Quantum Computing vs. Bitcoin: Is Encryption Really at Risk?
By: bitcoin ethereum news|2025/05/16 19:00:12
0
Share
Khushi. V. Rangdhol May 16, 2025 01:45 Quantum computing threatens Bitcoin long-term, but current risks are low. Solutions like PQC and hard forks are being explored. Introduction Bitcoin’s security is built on robust cryptographic foundations. At its core, the network relies on the Elliptic Curve Digital Signature Algorithm (ECDSA) to secure wallets and verify ownership, while SHA-256 , a secure hashing algorithm, underpins the mining process and block verification. These technologies have proven resilient against classical computers, but with the rise of quantum computing , a pressing question emerges: Could a future quantum machine render Bitcoin’s encryption obsolete? The Risk to Bitcoin Wallets: ECDSA and Shor’s Algorithm The most immediate concern lies in ECDSA, the algorithm used to sign Bitcoin transactions. Bitcoin wallets operate using public-key cryptography, where a private key generates a corresponding public key. This public key, when hashed, becomes a Bitcoin address. When a transaction is made, the public key is revealed on-chain, and this is where quantum computers pose a threat. Using Shor’s algorithm , a sufficiently powerful quantum computer could, in theory, reverse-engineer the private key from the exposed public key. While this sounds alarming, the risk only materializes once a public key is broadcast—meaning that wallets that reuse addresses , especially from Bitcoin’s early days, are most at risk. In contrast, modern best practices that use a new address for every transaction remain relatively safe, as the public keys are not exposed until they are used. SHA-256, Mining, and the 51% Attack Misconception Another commonly discussed quantum threat is the possibility of a 51% attack , where a quantum computer could outperform all traditional miners and take control of the blockchain. This fear is often based on Grover’s algorithm , which can theoretically accelerate brute-force attacks on SHA-256 hashes. However, Grover’s advantage is only quadratic—it reduces the effective security of SHA-256 from 256 bits to 128 bits. While this is a notable reduction, 128-bit security is still extremely robust. Moreover, current quantum hardware, such as IBM’s 433-qubit Osprey processor, is nowhere near capable of performing this task. The Bitcoin network’s difficulty adjustment mechanism also ensures that mining becomes exponentially harder as more computational power is introduced, making a successful quantum-based 51% attack economically and technologically implausible with today’s hardware. How Close Are We to a Quantum Threat? Today’s quantum machines are still in the early stages of development. They are noisy, error-prone, and generally possess fewer than a thousand reliable qubits. To break ECDSA, experts estimate that a machine would require around one million stable, error-corrected qubits —a milestone that many believe is at least 10 to 30 years away , barring major breakthroughs. Despite the relatively slow progress, the cryptographic community is already preparing for the future. While upgrades like Taproot have improved efficiency and privacy on the Bitcoin network, they do not yet offer protection against quantum threats. However, significant work is being done globally on post-quantum cryptography (PQC) . Organizations like the U.S. National Institute of Standards and Technology (NIST) are developing and standardizing new algorithms that can resist both classical and quantum attacks. These include lattice-based and hash-based schemes, which could be integrated into Bitcoin in the future. Preparing Bitcoin for the Quantum Era Bitcoin’s strength lies not just in its technology, but in its ability to adapt. If quantum computers begin to pose a credible threat, the network can transition to quantum-resistant cryptographic systems. Integrating such algorithms may require a hard fork —a coordinated protocol upgrade that introduces new standards incompatible with older ones. This is challenging but entirely within reach, especially given Bitcoin’s open-source nature and active developer community. In the meantime, Bitcoin users can take practical steps to reduce exposure to potential quantum attacks. The most important is to avoid address reuse , as quantum attacks primarily apply to addresses where the public key has been revealed. Using multi-signature wallets adds an extra layer of security by requiring an attacker to compromise multiple keys simultaneously. Long-time holders—especially those who acquired Bitcoin in its early days—should consider migrating funds to modern addresses that follow best practices. Will Bitcoin Need to Fork? If quantum advancements accelerate faster than anticipated, Bitcoin may need to undergo a major transformation. A consensus-breaking hard fork could be necessary to shift the entire network to quantum-safe algorithms. Developers are already researching these possibilities, and blockchain projects like QANplatform and Quantum Resistant Ledger (QRL) offer working examples of quantum-secure infrastructures. These projects could serve as valuable case studies or even influence future Bitcoin upgrades. Conclusion While quantum computing poses a serious long-term risk to Bitcoin’s cryptographic infrastructure, the immediate threat remains low . Current quantum machines are far from the capability needed to compromise the network, and there is a clear roadmap for how Bitcoin can evolve if and when the threat becomes real. The key takeaway is that Bitcoin is not doomed. Its decentralized nature, active developer base, and proven adaptability position it well to face the quantum era. The crypto community must remain proactive, monitor technological advancements, and be prepared to adopt post-quantum cryptography before it becomes an urgent necessity. Image source: Shutterstock Source: https://blockchain.news/news/quantum-computing-vs-bitcoin-is-encryption-really-at-risk
You may also like

Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."

Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.

Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.

The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point

Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.

The little deer live by the water and grass
Mining companies have never been the most devout believers in Bitcoin. Under the pressures of halving compressing profits, financial reports showing revenue growth without profit increase, and coin prices falling below mining costs, the industry is collectively de-risking.

The world belongs to Chinese people who speak English
The world is vast, and only playing half of it is truly a loss.

Why Stop at 126K? Michael Saylor Breaks Down BTC Stagnation and Retail Absence Truth
Bitcoin is digital capital, and I will spend a thousand hours explaining it to you. Eventually, you will understand, but you will still have to endure a 45% crash.

Virtuals Protocol's inaugural Titan project: ROBO aims to give a wallet to a robot
This is a key step in Virtuals expanding the Agent Economy into the Embodied AI and Robotics field.

Stablecoin Latest Report: Actual Distribution and Circulation Much More Notable Than Supply
The Truth about Stablecoin Circulation Speed, Concentration, and Structure After Doubling the Supply

Paradigm's New Arithmetic: When Crypto Can't Hold 12.7 Billion, AI Becomes the Answer
It took Paradigm three years to emerge from the ruins of FTX.

Wintermute Founder: In the Lost Cryptocurrency Market, What Can We Still Do?
This is more like a manifesto, discussing "the very reason we are here."

$1.3 Billion Debt: BitDeer Faces Tough Battle
Wu Jihan is waiting for AI's money to catch up with the speed of debt.

Anthropic's IPO Gamble: At the Most Unlikely Moment, It Chose to Say No
In the AI Era, what is the most valuable thing?

Paradigm's Math Problem: $12.7 Billion, Too Big for a Single Crypto Fund
Emerging from the ruins of FTX, Paradigm took three years

Ethereum Unveils Scaling Roadmap, What's Different This Time?
Short-term improvements to execution efficiency through the Gas mechanism optimization and block validation parallelization, and long-term scalability through ZK-EVM and blobs data architecture.

Anthropic Ban Wave, OpenAI $100 Billion Funding Controversy: What Is the Overseas Crypto Community Talking About Today?
What Have Foreigners Been Most Interested in Over the Last 24 Hours?

Morning News | OpenAI receives $110 billion investment; Solana launches Solana Payments; M0, MoonPay, and PayPal jointly launch PYUSDx
Overview of Important Market Events on February 27
Dune Stablecoin Research: The Flow and Demand of a $300 Billion Market
In the dataset, transfers are no longer simply labeled as pure "transaction volume," but are classified as different on-chain activities. This is the difference between "just knowing that $100 trillion has been transferred" and "understanding why it was transferred."
Stripe Annual Letter: New cognitive density is extremely high, especially the 5-level model of "AI + Payments"
Every trend here is affecting everyone's future survival.
Sam Altman's Twenty-Four Hours: The Pentagon said "no" twice, but only one was serious
In Silicon Valley, Altman's sub-12-hour move has a name. It's not called backstabbing, it's called timing.
The US-Iran Conflict Spreads to the Crypto Space: What to Expect in the Market on Monday
The most important industry in the crypto world, only 300 kilometers away from the missile's impact point
Lily Liu, the chair of the Solana Foundation, shouted "Don't waste time on crypto," is the crypto industry really dead?
The interest of the younger generation is shifting from cryptocurrency to the field of artificial intelligence, which coincides with the current phenomenon in the cryptocurrency industry.
The little deer live by the water and grass
Mining companies have never been the most devout believers in Bitcoin. Under the pressures of halving compressing profits, financial reports showing revenue growth without profit increase, and coin prices falling below mining costs, the industry is collectively de-risking.