Cryptocurrency culture is always changing, and so are the threats that vulnerable communities face as they adapt to the shifting landscape. Perhaps one of the most dangerous, yet widely ignored threats coming down the pipeline is the emergence of quantum computing. Which way is the digital world going Julien Duval like to keep an eye on financial markets, tech and innovations in emerging technologies. He argues that quantum computers pose an existential threat to Bitcoin and could bring it down altogether. This isn’t merely a concern for the future, it’s a threat today that requires action now.

The "Store Now, Decrypt Later" Threat

The heart of the issue can be summed up by what’s called the “store now, decrypt later” attack. This isn’t limited to acute violations. It’s a long game play in which bad guys scoop up sensitive encrypted data today, with every intention of being able to decrypt that data when the quantum computers become available. Imagine a burglar quietly amassing jigsaw pieces. They understand that one day soon they will have the tools to connect it all and uncover all that buried treasure.

This retroactive approach makes encryption a 20-30 year long risk management exercise. Data that appears secure today, even if it’s encrypted, can be corrupted or lost down the road. Sensitive information, intellectual property, and even Bitcoin private keys could be harvested and stored, waiting for the day a quantum computer can crack the code. Even data that’s encrypted today is in danger. Whether that threat comes to pass in 5, 10 or even 20 years from now, we must be proactive and ever watchful. The impact would be monumental. This is particularly the case for Bitcoin, whose future viability relies on the long-term robustness of its cryptographic underpinnings.

We believe the possible effects of a successful “store now, decrypt later” attack are truly catastrophic. If attackers are able to arbitrarily control vulnerable addresses, public confidence in Bitcoin as a robust, secure store of value would be shattered. It’s not even the very old, lost BTC that’s in danger. There are several other vulnerable bitcoins that are still currently sitting in wallets with exposed public keys. Millions of BTC would suddenly be at risk of potential theft, almost certainly rendering the currency worthless in the event of such a theft.

Protecting Your Coins: A Proactive Approach

So, how do we secure Bitcoin assets from this imminent quantum menace? FMI’s Julien Duval reminds us that it’s better to take proactive measures than react too late. Here are some actionable steps users can take:

  • Multisignature setups: Utilize multisignature wallets that require multiple keys to authorize transactions. This makes it significantly more difficult for quantum computers to compromise a wallet.
  • Secure Key Storage: Store private keys in secure locations, such as safe deposit boxes. Consider splitting the seed phrase into two parts and storing them in different secure locations for added security.
  • Hardware Security: Use hardware security modules like YubiKey or Google Titan for two-factor authentication, which are more secure than SMS-based 2FA.
  • Self-Custody: Consider self-custody of Bitcoin holdings, giving users ultimate control and removing reliance on third parties or online infrastructure.
  • Post-Quantum Cryptography: Stay informed about the development and implementation of post-quantum cryptography, which can provide long-term security against quantum computing threats.

Dormant bitcoins in particular are vulnerable. This coincidentally applies to many that are sitting in legacy wallets with public keys exposed, which haven’t moved in years. These three are pretty much the low-hanging fruit for quantum computers. Moving these coins to more secure, quantum-resistant wallets should be a priority.

Companies such as SEALSQ are already developing innovative technologies to help fight back against this menace. This includes providing strong protection for sensitive data – such as secure storage of post-quantum private keys – by creating Post-Quantum Semiconductors. Their QS7001 secure element is optimized for running both traditional and NIST-standardized PQC algorithms, empowering the blockchain ecosystem to stay secure in a post-quantum world. Beyond quantum computing, the company is developing solutions that allow for quantum-resistant security to protect applications as diverse as Multi-Factor Authentication tokens.

The Vulnerability of Dormant Bitcoins

Perhaps the most alarming piece of the quantum computing threat is its impact on dormant bitcoins. These coins have mostly been sitting in legacy wallets with revealed public keys. Lacking any transaction history at all for several years, they are an attractive target for quantum attackers.

  • Exposed Public Keys: Older wallets may have exposed public keys, making them susceptible to quantum attacks.
  • Lack of Activity: Dormant wallets often lack the security updates and active management that newer wallets benefit from.
  • Low-Hanging Fruit: Quantum computers are likely to target these wallets first due to their ease of access and potential for high reward.

Quantum Computing: Not Just a Threat

While the threat to Bitcoin is real, it's important to remember that quantum computing isn't solely a danger. At the same time, it is where the crypto world has a tremendous opportunity to change for the better.

  • Enhanced Security: Quantum computers can potentially be used to create unbreakable encryption, making cryptocurrency transactions even more secure.
  • Improved Cryptography: Quantum computers can help develop new, quantum-resistant cryptographic algorithms, such as lattice-based cryptography, hash-based signatures, and code-based cryptography, which can provide long-term security for cryptocurrencies.
  • Faster Transaction Processing: Quantum computers can potentially speed up complex computations, such as those required for transaction verification and validation, which could lead to faster transaction processing times.

The best strategy is to be ready for the existential threat and look for opportunities in the potential power. By staying informed, taking proactive security measures, and supporting the development of quantum-resistant technologies, the crypto community can navigate this new frontier and ensure the long-term viability of Bitcoin and other cryptocurrencies.