A new warning about the potential threat of quantum computing to cryptocurrencies highlights the need for protective measures for digital assets.
Threat of Quantum Computing
A proposal submitted to the US Securities and Exchange Commission (SEC) warns that advancements in quantum computing could disrupt the cryptographic foundations of Bitcoin and Ethereum. The document, titled 'Post-Quantum Financial Infrastructure Framework' (PQFIF), authored by Daniel Bruno Corvelo Costa, indicates that trillions of dollars in digital assets may be at risk if current encryption methods fail.
Recommendations for Protecting Crypto Assets
The proposal emphasizes the need for early action against the threat of quantum computing. Recommendations include automated vulnerability assessments of digital platforms, prioritization of high-risk systems like institutional wallets and exchanges, and a phased migration to quantum-resistant cryptography. The plan incorporates standards finalized by the National Institute of Standards and Technology (NIST) in 2024.
Proposals from Bitcoin Developers
In July, developers proposed a new Bitcoin Improvement Proposal (BIP) titled 'Post Quantum Migration and Legacy Signature Sunset,' which calls for a phased migration away from Bitcoin's current signature schemes in favor of quantum-resistant alternatives. Initially, it would block users from sending funds to older addresses vulnerable to quantum attacks.
Given the potential risks posed by quantum computing, timely measures need to be taken to secure cryptocurrencies. This is crucial for both investors and the future of digital asset markets.
