Is Bitcoin nearing its end?

Quantum computers have the potential to break through the security layers of cryptocurrency wallets. Photo: Bloomberg .

The threat posed by quantum computing to cryptocurrencies was once considered a distant prospect. However, that is changing rapidly.

"The threat has moved from theory to reality," said Ayo Akinyele, head of engineering at RippleX. The company is researching post-quantum cryptography and plans to migrate its entire infrastructure within the next two years, with wallet security being a top priority.

Security concerns

What makes the cryptocurrency industry particularly vulnerable is the structure of digital wallets. Each wallet has two keys: a public key that serves as the recipient's address and a private key, kept secret by the user to access the assets. Quantum computers are theoretically capable of decrypting the private key, allowing an attacker to steal assets without leaving a trace.

Unlike traditional banks that can track and intercept the flow of money, theft on the blockchain is completely anonymous and irretrievable.

Bitcoin stands out for its complete decentralization. Photo: Bloomberg .

A Google report published in April showed that quantum computers can break cryptography with fewer resources than previously predicted. Researchers identified several specific vulnerabilities related to cryptocurrencies and associated digital infrastructure.

"We want to raise awareness and provide recommendations to the community to improve security," author Ryan Babbush wrote.

The principle behind this threat lies in the physical nature of quantum computers. While conventional computers use binary bits that only take the values 0 or 1, qubits can exist in every intermediate state simultaneously. This capability allows quantum computers to process enormous amounts of data and decode large prime number operations.

"The challenge is no longer something that will take another decade, as people once thought," assessed Gautam Chhugani, a senior analyst at Bernstein. He estimated that the cryptocurrency industry will need 3-5 years and massive investment to prepare for this situation.

The companies are taking action.

Following the publication of Google's research, many major players in the industry have begun planning their response. Stablecoin issuer Circle is preparing its Arc blockchain for the post-quantum era, starting with the creation of quantum-resistant wallets. The Ethereum Foundation has established a task force and developed a transition roadmap. Tron Corporation has also outlined similar plans.

Sebastian Weidt, CEO of Universal Quantum, stated that feasible technical solutions exist. Among them, researchers have developed several special mathematical protocols that are very difficult for quantum computers to break.

Ripple is stepping up research into post-quantum cryptography. Photo: Bloomberg .

"There are ways to make quantum computers much harder to operate," Weidt said.

While blockchain organizations react relatively quickly, Bitcoin, with its completely decentralized structure, presents the most difficult challenge. Currently, no single entity can make decisions about security upgrades for the entire network.

Conversely, some security experts have an optimistic view of the cryptocurrency field. Kostas Chalkias, a cryptography expert at Mysten Labs, believes that quantum computers will still need "a decade" to threaten cryptocurrencies. Meanwhile, the US government has just announced a total investment of $2 billion in quantum computing companies, a signal that this technology is accelerating faster than ever before.