Future-Proof: Quantum Computers and the Cryptocurrency Resistance
“The first sign of a true quantum computer’s existence will come when all of the unmined bitcoin in the world are mined within a matter of seconds.”
The concept that something is “future-proof” is, on its face, an arrogant claim implying some privileged knowledge of future paradigm shifts. It assumes an understanding of technology that does not yet exist, and purports that a solution is not only viable, but developed, implemented, and packaged in a product or service. Examples of “future-proofing” cover a large range of topics— from the U.S. Consititution, to the development of new medication, and most recently to the concept of quantum computers. Despite the unreasonability of making claims that something is “future-proof,” there is no question that deliberate and aggressive changes need to be made to improve the odds of catastrophe as a result of sudden and drastic changes. In other words, it is important to differentiate between the conceited claim of “quantum-proof” and that of “quantum-resistant.” The latter term is credible, realistic and necessary — while the first is arrogant and dangerous.
The spheres most likely to be impacted by quantum computing are commonly understood to be that of cryptocurrencies and blockchain. As of now, most cryptocurrencies allow for “mining,” which requires heavy processing of algorithms to produce the “reward” — some fraction of the given cryptocurrency. With a powerful server, it can take several weeks to mine a single bitcoin. These servers can also provide confirmations to transactions — ensuring that the funds being sent from one wallet exist while establishing that the wallet they are being sent to then holds those funds. Cue the quantum computer.
Quantum computing has, as a concept, existed since the early 2010s. In simple terms, it is a computer that relies on quantum bits to process vast amounts of information in the fastest, most efficient way possible. As companies, research institutions, and universities around the globe move ever closer to achieving a true quantum computation, worry is mounting in the cryptocurency sphere about what it will mean for them. As of now, there are two standouts in the “altcoin” market that are developing methods to resist these new supercomputers.
Iota (MIOTA) is a cryptocurrency developed using Tangle, a distributed ledger that allows for blockless transactions. Tangle uses other transactions in process to confirm the transaction requested. Blockchain, in contrast, requires several servers to individually confirm that the transaction, and all transactions before it, are valid. Due to its non-reliance on blockchain, Iota is set up for some degree of protection from quantum computing. However, several unforeseen issues have arisen, including a brute-force attack by inputting zero-value transactions. This is possible due to the no-transaction-fee feature of Iota. This is among several issues requiring attention by the development team.
The second cryptocurrency integrating guards against quantum computing is Shield (XSH). Although this coin is available for purchase on several smaller exchanges, its most notable features are still under development. These features include anonymity in transactions, a tipping plug-in that will allow for peer-to-peer micro-payments online, master nodes, and quantum-resistance. In place of the popular ECDS protocol, Shield’s development team is now deciding between several approaches to the implementation of quantum-resistance: Lamport, Winternitz, or BLISS signatures. Shield’s development team seemingly has a head-start in the endeavor for quantum-resistance — a problem that most, if not all, cryptocurrencies will face at some point in the future.
Although the estimated timeframe for achieving true quantum computation is set around 2027, as the MIT Technology Review predicted late last year, the months following the publication of that article were perhaps the most buoyant for quantum computing. Across the globe, the race has begun to achieve what would undoubtedly be among the greatest achievements of the 21st century. The attention and funding has been quickly increasing for research into not only quantum computing, but also artificial intelligence and automation. While these three advances combined together are cause for concern, it is comforting to know that there are at least some assuming leadership in the cryptocurrency sphere with regard to the resistance.
