When crypto investors discuss quantum computing, they invariably worry about its potential to undermine encryption. Quantum computers alone do not pose such a mortal threat, however. Its their capacity to exploit Shors algorithm that makes them formidable.
Thats because Shors algorithm can factor large prime numbers, the security behind asymmetric encryption.
Another quantum algorithm can potentially undermine the blockchain as well. Grovers algorithm helps facilitate quantum search capabilities, enabling users to quickly find values among billions of unstructured data points at once.
Unlike Shors algorithm, Grovers algorithm is more of a threat to cryptographic hashing than encryption. When cryptographic hashes are compromised, both blockchain integrity and block mining suffer.
One-way hash functions help to make a blockchain cryptographically secure. Classical computers cannot easily reverse-engineer them. They would have to find the correct arbitrary input that maps to a specific hash value.
Using Grovers algorithm, a quantum attacker could hypothetically find two inputs that produce the same hash value. This phenomenon is known as a hash collision.
By solving this search, a blockchain attacker could serendipitously replace a valid block with a falsified one. Thats because, in a Proof-of-Work system, the current blocks hash can verify the authenticity of all past blocks.
This kind of attack remains a distant threat, however. Indeed, achieving a cryptographic collision is far more challenging than breaking asymmetric encryption.
A somewhat easier attack to pull off using Grovers algorithm involves proof-of-work mining.
Using Grovers search algorithm, a quantum miner can mine at a much faster rate than a traditional miner. This miner could generate as much Proof-of-Work as the rest of the network combined. Consequently, the attacker could effectively take over the blockchain and force consensus on any block they selected.
A quantum miner might also use Grovers search algorithm to help facilitate the guessing of a nonce. The nonce is the number that blockchain miners are solving for, in order to receive cryptocurrency. Thats because Grovers algorithm provides a quadratic speedup over a classical computer (for now, ASIC-based mining remains considerably faster).
How fast is a quadratic speedup? Roughly stated, if a classical computer can solve a complex problem in the time of T, Grovers algorithm will be able to solve the problem in the square root of T (T).
Thus, any miner who can solve the nonce faster than other miners will be able to mine the blockchain faster as well.
Grovers algorithm could also be used to speed up the generation of nonces. This capability would allow an attacker to quickly reconstruct the chain from a previously modified block (and faster than the true chain), .In the end, a savvy attacker could substitute this reconstructed chain for the true chain.
Grovers algorithm may ultimately help make Proof-of-Work obsolete. Thats because there is no possible PoW system that is not susceptible to Grover speed-up. In the end, quantum actors will always have an advantage over classical ones in PoW-based blockchains. (allowing them) to either mine more effectively or (instigate) an attack (source).
As bitcoin matures, the weaknesses inherent within PoW become ever-more evident. Miners are pitted against each other as if in a never-ending arms race This arms race is incentivized by the ability of larger mining pools to achieve economies of scale, a cost advantage that quickly erodes the capacity of individual miners to survive.
Of course, Proof-of-Stake is not without flaws. For instance, critics assert that it favors larger stakeholders (hence the claim that it enables the rich to get richer). These critics neglect to note that PoW is amenable to the same strategy (albeit with miners).
As this arms race comes to a head, any miner with the resources to do so will use quantum computing to achieve a competitive advantage. Combined with Grovers algorithm, a quantum-based miner would outperform other miners (most likely, small-and medium-sized miners). .
With access to quadratic speedup, any PoW coin will inevitably fall under the control of mega-cap institutions and governments. If so, regular investors and mid to large-cap enterprises risk getting priced out of the market. In particular, their devices will be either too expensive or prone to excessive regulation (much the same way that PGP encryption once was).
Shors algorithm undoubtedly poses the most immediate threat to bitcoin (namely, the potential to break ECDSA, its digital signature algorithm). Grovers algorithm is a distant second in this respect.
Grovers algorithm may someday pose a formidable challenge to PoW mining, however. And it could conceivably threaten cryptographic hashing as well. Any algorithm powerful enough to reverse engineer hash values would invariably undermine PoW itself.
Quantum Resistant Ledger (QRL) will ultimately offer protection against both.
For instance, a quantum-safe digital signature scheme named XMSS safeguards the coin from Shors algorithm.
Likewise, the QRL team will rely on Proof-of-Stake to head off mining-based attacks using Grovers search algorithm.
As you can see, the QRL team is thoroughly preparing for a post-quantum future. Their mission is an increasingly urgent one, as quantum computing continues to advance by leaps and bounds.
See more from Benzinga
2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
View original post here:
Is Bitcoin (BTC) Safe from Grover's Algorithm? - Yahoo Finance
- Breakthroughs in quantum computing drive higher processing power - Digital Nation - November 25th, 2021
- US blocks export of quantum computing tech to Chinese organizations - CNET - November 25th, 2021
- Why Blockchain isnt as secure as you think - Evening Standard - November 25th, 2021
- Tech pioneers to headline Princeton conference on innovation and entrepreneurship - Princeton University - November 25th, 2021
- Quantum Turing machine - Wikipedia - November 11th, 2021
- Is Quantum Computing the Future of AI? - Datanami - November 11th, 2021
- Multiverse Computing Partners with IonQ to Bring Quantum Computing to Global Finance - HPCwire - November 11th, 2021
- Leading Technology Executive Max Schireson Joins Quantum Machines' Board of Directors - HPCwire - November 11th, 2021
- Andrew Chi-Chih Yao receives the 2021 Kyoto Prize in Advanced Technology: Commemorative Lecture on his wonderful journey in computer science to be... - November 11th, 2021
- Clever Combination of Quantum Physics and Molecular Biology - SciTechDaily - November 11th, 2021
- QuTech creates a time crystal - Innovation Origins - November 6th, 2021
- Grover's algorithm - Wikipedia - November 1st, 2021
- Quantum Engineering | Electrical and Computer Engineering - November 1st, 2021
- First Photonic Quantum Computer on the Cloud - IEEE Spectrum - November 1st, 2021
- Quantum Computer Maker Rigetti to Go Public via $1.5 ... - November 1st, 2021
- Building a large-scale quantum computer is a huge challenge. Will we ever get there? - ZDNet - November 1st, 2021
- Two UCSB Scientists Receive Award to Partner With Ciscos New Quantum Research Team - Noozhawk - November 1st, 2021
- Researchers show new strategy for detecting non-conformist particles called anyons - Brown University - November 1st, 2021
- IonQ to Report Third Quarter 2021 Financial Results on November 15, 2021 - Yahoo Finance - November 1st, 2021
- UCSB and Cisco Systems Collaboration Aims to Push the Boundaries of Quantum Technologies - AZoQuantum - November 1st, 2021
- 'Quantum computer algorithms are linear algebra, probabilities. This is not something that we do a good job of teaching our kids' - The Register - October 2nd, 2021
- Quantum computer company IonQ makes Wall Street debut - Financial Times - October 2nd, 2021
- Fujitsu and Osaka University Deepen Collaborative Research and Development for Fault-Tolerant Quantum Computers - HPCwire - October 2nd, 2021
- Fermilab on the trail for a new building block of matter and quantum computing power - Medill Reports Chicago - Medill Reports: Chicago - October 2nd, 2021
- A Boulder Company Is Leading the Next Technology Revolution - 5280 - 5280 | The Denver Magazine - October 2nd, 2021
- Judith Olson, Senior Physicist at ColdQuanta, Named Next Generation Leader of the Year at Women in IT Awards - HPCwire - October 2nd, 2021
- Quantum Computing in Manufacturing Market Still Has Room To Grow: International Business Machines, D-Wave Systems, Microsoft - Digital Journal - October 2nd, 2021
- The coevolution of particle physics and computing - Symmetry magazine - September 30th, 2021
- The Fourth Industrial Revolution (4IR) Takeover: IoT and Quantum-Resistant Blockchains Are Setting the Trend - FinanceFeeds - September 30th, 2021
- $5M NSF Grant to Fund Research on Quantum Internet Foundations - Maryland Today - September 19th, 2021
- 3 Quantum Computing Stocks to Buy for Their Promising Healthcare Potential - InvestorPlace - September 19th, 2021
- DoD Buys Two New Supercomputers That Rank Among Its Most Powerful Ever - Breaking Defense - September 19th, 2021
- College Park's IonQ and the University of Maryland are teaming up to open a $20M quantum lab - Technical.ly DC - September 15th, 2021
- Where the laws of matter break down, a quantum discovery crops up - UPJ Athletics - September 15th, 2021
- Small, diamond-based quantum computers could be in our hands within five years - Cosmos Magazine - August 26th, 2021
- IBM partners with the University of Tokyo on quantum computer - Illinoisnewstoday.com - August 26th, 2021
- A Simple Crystal Could Finally Give Us Large-Scale Quantum Computing, Scientists Say - ScienceAlert - August 16th, 2021
- IBM Partnering with University of Tokyo on Quantum Computer - Datamation - August 16th, 2021
- 40 years ago the first IBM PC was presented, that's how it was and what it knew how to do - Tech Gaming Report - August 14th, 2021
- The week in science news: Olympic Bat, controlled qubits, and speeding metal stars - TechRadar - August 14th, 2021
- Quantum information and quantum field theory: Study found a new connection between them - Tech Explorist - August 14th, 2021
- Global AI Chipsets for Wireless Networks and Devices, Cloud and Next Generation Computing, IoT, and Big Data Analytics to 2026 -... - August 14th, 2021
- What is quantum computing? Everything you need to know about the strange world of quantum computers - ZDNet - July 29th, 2021
- Will the NSA Finally Build Its Superconducting Spy Computer? - IEEE Spectrum - July 29th, 2021
- IBM's newest quantum computer is now up-and-running: Here's what it's going to be used for - ZDNet - July 27th, 2021
- URI to host international experts for conference on future of quantum computing - URI Today - July 27th, 2021
- Research by University of Surrey and Arqit reveals Quantum Threat to Digital Assets - Business Wire - July 27th, 2021
- A Roadmap On The Geopolitical Impact Of Emerging Technologies By Chuck Brooks And Dr. David Bray - Forbes - July 27th, 2021
- IBM and CERN on quantum computing to track the elusive Higgs boson - Tech News Inc - July 27th, 2021
- The Convergence of Communication and Computation with Dr. Vida Ilderem - RCR Wireless News - July 27th, 2021
- Quantum Computing Market is anticipated to surge at a CAGR of 33.7% over the next ten years - PRNewswire - July 21st, 2021
- Quantum Computing for the Future Grid - Transmission & Distribution World - July 21st, 2021
- Red Hat embraces quantum supremacy as it looks to the future - SiliconANGLE News - July 21st, 2021
- Quantum Computing Is Coming. What Can It Do? - Harvard Business Review - July 16th, 2021
- Rigetti Computing Partners with Riverlane, Astex Pharmaceuticals on Quantum Computing for Drug Discovery - HPCwire - July 16th, 2021
- Quantware Launches the World's First Commercially Available Superconducting Quantum Processors, Accelerating the Advent of the Quantum Computer. -... - July 16th, 2021
- The Future of Data Encryption: What You Need to Know Now - FedTech Magazine - July 16th, 2021
- Quantum computing: this is how quantum programming works using the example of random walk - Market Research Telecast - July 16th, 2021
- IBM shows the advantages of a quantum computer over traditional computers - Tech News Inc - July 16th, 2021
- Quantum Blockchain Technologies Plc - Working with D-Wave Systems - Yahoo Finance UK - July 6th, 2021
- Conclusions from Forum TERATEC 2021: European Cooperation, Novel Uses of HPC - HPCwire - July 6th, 2021
- IBM researchers demonstrate the advantage that quantum computers have over classical computers - ZDNet - July 2nd, 2021
- Is this the first physics problem that the quantum computer will solve? - Centrum Wiskunde & Informatica (CWI) - July 2nd, 2021
- New research proves that quantum computational errors are correlated and connects them to cosmic rays - Illinoisnewstoday.com - July 2nd, 2021
- CSRWire - Refusing Limits with Liz Ruetsch - CSRwire.com - July 2nd, 2021
- Crdit Agricole CIB partners with Pasqal and Multiverse Computing - IBS Intelligence - June 29th, 2021
- Keynotes Announced for IEEE International Conference on Quantum Computing and Engineering - HPCwire - June 29th, 2021
- The evolution of cryptographic algorithms - Ericsson - June 29th, 2021
- EU rewrites rulebook on science and technology cooperation with the rest of the world - Science Business - June 29th, 2021
- IBM's first quantum computer outside of the US has just gone live - ZDNet - June 22nd, 2021
- Quantum computers take up a lot of space. Researchers decided to shrink this one down - ZDNet - June 22nd, 2021
- New discoveries of rare superconductors may be essential for the future of quantum computing - Illinoisnewstoday.com - June 22nd, 2021
- Williams F1 drives digital transformation in racing with AI, quantum - VentureBeat - June 22nd, 2021
- Global IT giant to partner with U of C on quantum computing centre - Calgary Herald - June 2nd, 2021
- A Computer Memory Based on Cold Atoms and Light - Physics - June 2nd, 2021
- Quantum Chip Market by Trends, Dynamic Innovation in Technology and 2027 Forecasts Covid-19 Analysis The Manomet Current - The Manomet Current - June 2nd, 2021
- Quantum Blockchain inks deal with cryptography expert to optimise Bitcoin mining operations - Proactive Investors UK - June 2nd, 2021
- ColdQuanta Named to IBM Quantum Network to Help Research Quantum Computing Applications - ExecutiveBiz - May 28th, 2021
- Big bang theory: Maryland company moves ahead in quantum space race - The Star Democrat - May 28th, 2021
- Quantum internet: The race is on to build an unhackable online world - New Scientist - May 28th, 2021