$28.6 billion worth of Bitcoin is vulnerable to quantum attacks, Deloitte report


  • As per the report, BTC held in “pay to public key” addresses have higher risks of being attacked.
  • Deloitte is developing new methods of cryptography to resist quantum attack.

According to the researchers at Big Four accounting firm Deloitte, four million Bitcoin (worth $28.6 billion) is vulnerable to attack from quantum computers. As per the firm’s new research report, BTC that are held in “pay to public key” (p2pk) addresses have higher risks of being attacked as their public keys are exposed on the ledger by default. The public keys can be used to derive a private key. 

These sorts of addresses were used formerly before the implementation of a new standard. The new standard, called p2pkh (pay to a public key hash), only exposes public keys when a BTC value is sent from an address. The analysis also shows that BTC transferred to a new, modern p2pkh address with zero outgoing transactions is at less risk of being attacked.  

Quantum computers use the properties of quantum mechanics. It uses atoms and molecules to create systems to explore multiple possible solutions to a problem, rapidly producing answers. It won’t be long before the quantum tech will be used to crack the encryption schemes that keep crypto assets as well as the internet secure. However, it will take some time before this is powerful enough to crack modern cryptography.

Deloitte also announced that they are developing new methods of cryptography that are resistant to quantum attack. The firm noted that it could be potentially integrated into the leading crypto assets. 

Even if everyone takes the same protection measures, quantum computers might eventually become so fast that they will undermine the Bitcoin transaction process. In this case, the security of the Bitcoin blockchain will be fundamentally broken.

The only solution, in this case, is to transition to a new type of cryptography called ‘post-quantum cryptography’, which is considered to be inherently resistant to quantum attacks. These types of algorithms present other challenges to the usability of blockchains and are being investigated by cryptographers around the world.


 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin Price Prediction: BTC/USD bulls try to take back control after a bearish Monday

$9,702.80 to $9,736. This follows a heavily bearish Monday wherein the price fell from $9,922.30 to $9,702.80. As per the confluence detector, the bulls will need to overcome two strong resistance levels at $9,745 and $10,040.

More Bitcoin News

Ripple Price Analysis: XRP/USD bulls match to jumpstart rally to $0.35

Ripple is making a comeback towards the broken support at $0.30. The recovery follows a slump from highs marginally under $0.35 to lows of $0.27119. The Bollinger bands daily middle curve formed ...

More Ripple News

ETH/USD tug of war at $270 intensifies as $280 beckons

Ethereum managed to stay above the support at $240 during the bearish Monday. Also contributing to the support was the long term ascending trendline. The recovery from the support has been steady enough to hit levels slightly above $270. 

More Ethereum News

XMR/USD bulls make a comeback after finding support on the SMA 20 curve

XMR/USD bulls jumped up from the support provided by the SMA 20 curve to rise from $82.68 to $83.13. Before this, the market suffered from three straight bearish days following its repeated failure to ...

More Monero News

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC bulls brace for jump to $11,000

Bitcoin (BTC) has been growing for three weeks in a row. The first cryptocurrency hit $10,504 on Thursday - the highest level of 2020.

Read the weekly forecast

BTC

ETH

XRP