BlackRock, the world’s largest asset manager, has added a new warning to its iShares Bitcoin Trust filing, highlighting quantum computing as a potential risk to Bitcoin’s long-term security. The update flags that if quantum tech advances far enough, it could break the cryptographic systems that secure Bitcoin.
Quantum computers process huge numbers of possibilities at once, making them incredibly powerful and potentially capable of cracking codes. Bitcoin relies on two major cryptographic systems: SHA-256 and ECDSA, which work flawlessly for years but might be vulnerable to quantum attacks.
While a powerful enough quantum computer could reverse-engineer private keys, researchers agree that the timeline is still at least 10-20 years away from such machines becoming a threat. However, the crypto community knows it has to act early. Work on post-quantum cryptography is underway, and efforts are being made to future-proof Bitcoin.
To prepare for a potential quantum attack, developers are testing and integrating quantum-resistant algorithms into existing systems, while crypto businesses need to ensure their infrastructure is future-proof and educate users about the risks. Regulatory support is also crucial, with clear guidelines on how and when post-quantum upgrades should happen.
BlackRock’s warning serves as a wake-up call for the industry, emphasizing that being early matters when it comes to preparing for tech that could rewrite digital security rules. The transition to a quantum-resistant crypto world won’t be easy, but it has to happen.
Source: https://cointelegraph.com/explained/blackrock-issues-rare-warning-is-bitcoins-future-at-risk-from-quantum-tech