What You Need to Know:

• Quantum computing presents a serious threat to the security of cryptocurrencies, enabling faster and more covert attacks.
• Current blockchain governance is not equipped to react quickly enough to the fast-paced development of quantum threats.
• Quip Network offers quantum-proof vaults that secure assets without delaying for lengthy protocol upgrades.

Quantum computing is indeed a pressing danger for cryptocurrency, and sluggish governance mechanisms could leave blockchains exposed, argues Colton Dillion, co-founder of Quip Network, a service providing quantum-resistant vaults for digital asset storage.

Despite being in its early stages, businesses like Google and Microsoft are advancing research and development with the aim of significantly increasing processing speeds. This advancement could facilitate rapid calculations involved in breaking encryption methods utilized to protect blockchains.

Dillion noted in real scenarios, an attacker won’t reveal themselves outright. He commented:

“The threat won’t start with Satoshi’s keys getting stolen. The real quantum attack will look subtle, quiet, and gradual, like whales casually moving funds. By the time everyone realizes what’s happening, it’ll be too late.”

Dillion envisions a catastrophic scenario involving a quantum-computing-induced double-spend attack, which could theoretically reduce the necessary mining capacity for executing a 51% attack to just 26%.

Moreover, initiatives are underway to address the issue. Bitcoin developer Agustin Cruz has proposed QRAMP, a Bitcoin Improvement Proposal that suggests a hard-fork transition to quantum-secure addresses. Meanwhile, quantum startup BTQ aims to supplant the conventional proof-of-work consensus model with an entirely quantum-native system.

However, the challenge lies in securing community approval for these proposals. Governance processes within blockchain, whether for Bitcoin or Ethereum, are often politically charged, inherently fluid, and lengthy. As Dillion articulates, this leaves the system precariously vulnerable, especially with threats evolving at breakneck speed, much faster than the protocols could adapt.

Dillion warns that the BIP and EIP stages, while valuable for governance, are detrimental when swift reactions are required:

“When quantum hits, attackers won’t wait for community consensus.”

Dillion’s appearance will be at the IEEE Canada Blockchain Forum as part of Consensus 2025 in Toronto, where the IEEE collaborates as a Knowledge Partner.

Learn more: Quantum Computing Group Claims 1 BTC Reward for Breaking Bitcoin Encryption