Prolonged Blockchain Governance Puts Cryptocurrency at Risk of Quantum Attacks

Quantum computing presents a significant challenge to the security of cryptocurrencies, and the sluggish pace of governance may leave blockchains susceptible, as highlighted by Colton Dillion, a co-founder of Quip Network, which specializes in quantum-resistant storage solutions for digital assets.

Even though quantum technology is still developing, major tech firms like Google and Microsoft are advancing their research efforts. This technology harnesses the quantum states of particles to execute computations, aiming for a remarkable boost in processing speeds that could make decrypting robust encryption methods, which safeguard blockchains, considerably easier.

When quantum computing systems are operational, attackers are not expected to reveal their intentions right away.

“The initial threat won’t manifest through the theft of Satoshi’s keys,” Dillion noted in a recent conversation. “A genuine quantum assault will appear discreetly and gradually, akin to large holders moving funds. By the time the community catches on, it may already be too late.”

Dillion envisions a grim scenario characterized by a quantum-enhanced double-spend attack. He speculates that quantum computing could lower the required resources for a conventional 51% attack to approximately 26%.

“Now you’ve compromised the biggest wallets. You could revert the blockchain, liquidate those top wallets, and execute double-spending of all transactions—effectively a nuclear-level threat,” he elaborated.

The crypto sector is actively pursuing remedies.

For instance, Bitcoin developer Agustin Cruz has introduced QRAMP, a Bitcoin Improvement Proposal (BIP) that calls for a significant upgrade to incorporate quantum-secure addresses. Additionally, the quantum-focused company BTQ has proposed a complete overhaul of the traditional proof-of-work system with a consensus model tailored for quantum environments.

However, these initiatives require backing from the community. Blockchain governance mechanisms, such as BIPs for Bitcoin and Ethereum Improvement Proposals (EIPs) for Ethereum, are often influenced by political factors, making the decision-making process slow and cautious.

The Bitcoin community’s recent decision regarding the OP_RETURN function, for example, was the result of years of deliberation and extensive discussions among developers about its appropriate use. Similarly, Ethereum’s upgrades, including the Merge, faced prolonged discussions and wait times.

Dillion contends that the governance procedures currently in place leave cryptocurrencies dangerously exposed, as threats from quantum computing are likely to advance far more swiftly than the protocols can adapt.

“Efforts are focused on top-down approaches through BIPs or EIPs, seeking collective agreement. We consider this a formidable challenge,” he explained.

Quip Network’s solutions offer quantum-resistant vaults that enable immediate adoption at the user level, removing the dependency on protocol changes. These vaults use a hybrid cryptographic approach, merging traditional and quantum-resistant methods to deliver security that is compatible across various blockchain platforms.

These provisions empower major holders of cryptocurrency to safeguard their assets while awaiting advancements in blockchain governance. Dillion argues that crypto communities cannot afford to waste time in lengthy discussions.

“BIP and EIP frameworks facilitate governance but fall short in terms of agile threat response,” stated Dillion. “Once quantum computing is in play, attackers won’t be patient for community consensus.”