Mining interruption and exposure of private keys

The rapid evolution of quantum computing could pose major threats to the Bitcoin ecosystem according to CryptoQuant.

A new analysis of the platform revealed two critical areas that could be targeted: mining and private key security.

Dual Bitcoin Vulnerabilities

Bitcoin miners rely on a nonce and the SHA-256 hash function to secure the network by searching for valid hashes in a process known as proof-of-work, which requires a lot of computational power. Quantum computers, leveraging algorithms like Grover’s, could significantly improve the efficiency of brute force mining and ultimately enable faster hash validation.

This breakthrough could challenge network security, emphasizing the importance of maintaining a strong non-quantum hash rate to protect the network from potential quantum threats, CryptoQuant noted in its update this week.

Meanwhile, quantum computing raises significant concerns about private key security, especially with Shor’s algorithm, which could theoretically extract private keys from public keys. CryptoQuant explained that this makes “pay-for-public-key” (P2PK) addresses particularly vulnerable, as they directly expose the public key.

On the other hand, “payment per public key hash” (P2PKH) addresses provide an additional layer of security, but still reveal the public key during Bitcoin transfers, making address reuse a potential risk. Interestingly, the use of P2PKH addresses has grown by 14%, although it is unclear if this increase is linked to fears surrounding quantum computing.

“Quantum computing is a growing risk for Bitcoin. Quantum computing uses principles of quantum mechanics, where information is processed using qubits that can exist in multiple states simultaneously (superposition) and that can become entangled with other qubits. This allows that quantum computers can solve certain complex problems much faster than classical computers, even though the technology is still in development.”

Bitcoin Quantum Vulnerability

The debate surrounding quantum computing is not new. Concerns about Bitcoin’s security resurfaced after a NIST report in November declared that “quantum vulnerable” algorithms will be obsolete within five years. Some, like X user “Bitcoin Isaiah,” criticized the Bitcoin community for downplaying the threat and calling for preemptive action.

However, Adam Back, CEO of Blockstream and renowned cryptographer, argued that Bitcoin encryption is secure until at least 2035 and that current concerns may be premature.

In recent weeks, Google’s Willow quantum chip has also divided the community over Bitcoin security debates. Unveiled on December 9, Willow boasts massive computing power, solving problems in five minutes that would take traditional supercomputers trillions of years. However, experts argue that brute-force attacks on Bitcoin remain unfeasible even for quantum systems, which require astronomical computing resources.

An MIT review had previously suggested that the capabilities of quantum computing are overblown.

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