On October 11, Chinese researchers from Shanghai University led by Wang Chao claim to have cracked the encryption algorithms protecting banking systems and cryptocurrency wallets using a quantum computer. This breakthrough has been described as âthe first real and substantial threatâ to the cryptographic systems that underpin the heart of the global financial and cryptocurrency ecosystem.
What does this mean for cryptocurrency users?
The affected algorithms, such as Present, Gift-64 and Rectangle, form the basis of advanced encryption standards (AES), which include the highly secure AES-256. The latter has been a mainstay in protecting digital wallets and financial transactions, considered nearly invulnerable. However, researchers say quantum computers could change the game sooner than we imagine.
Quantum computing, using techniques such as quantum annealing, enables these machines to solve complex problems, such as cracking encryption, at a speed and efficiency that traditional methods simply cannot match. This could enable them to find the cryptographic keys that protect funds and personal data more quickly than ever before.
Is the security of our cryptocurrencies at risk?
Although the researchers have made significant progress, current limitations of quantum technology, such as environmental factors and hardware restrictions, prevent a large-scale quantum hack from happening at this time. However, the team warns that this is just the beginning. With future developments, vulnerabilities could be exposed and cryptocurrencies would be left unprotected.
This announcement raises a crucial question: is the crypto industry prepared for a quantum threat? According to Vitalik Buterin, co-founder of Ethereum, the risk can be mitigated in the future. In a March post, he suggested that a hard fork of the Ethereum blockchain could solve the problem, allowing users to download new wallet software and protect their funds. Although this theoretical solution could start to be implemented soon, the quantum breakthrough remains a serious warning.
What can we expect?
This milestone marks a turning point in the history of cryptocurrencies. With quantum computers able to break encryption faster than anticipated, the need for security innovation becomes urgent. The cryptocurrency and blockchain industry must evolve in tandem with quantum technology to protect the assets of billions of users.
