$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

BTC/USD Price Analysis: Steps back from 50-day SMA inside rising wedge

While stepping back from 50-day SMA, BTC/USD takes rounds to 7,305 amid early Friday. Even so, the crypto leader stays inside the rising wedge bearish technical formation. Hence, sellers will wait for the confirmation of the bearish technical ...

More Bitcoin News

Ripple Price Analysis: XRP struggles at the 0.20 once again

Ripple remains in a bullish trend on the 4-hour chart below. The price continues to make higher highs and higher lows but it seems the bulls have stalled at 0.20. That is noticeable on the volume ...

More Ripple News

Monero Price Analysis: The Gann fan line and psychological level 60.00 have been rejected

Monero is having another positive session despite stalling at the psychological 60.00 level. The chart is still a bullish one with the pair continuing to make higher lows and higher highs.

More Monero News

TRON Price Analysis: TRX hits a brick wall at the 55 EMA

TRON has been on quite the run since hitting the swing low on March 13th but now it seems the altcoin has run into some problems. This wave of higher lows and higher highs could come to an end as the price stalled at the 55 exponential moving average. 

More TRON news

BEST CRYPTO BROKERS/EXCHANGES

Bitcoin Weekly Forecast: BTC breaks its ties with stocks, strives to return its safe-haven status

Most part of the week Bitcoin has been on the recovery path. Slowly but surely the coin left $6,500 behind and even tested waters above $7,000.

Read the weekly forecast

BTC

ETH

XRP