A recent breakthrough in quantum computing by Google has reignited security concerns across the cryptocurrency world, especially regarding Bitcoin. In its latest development, Google’s research team announced it had reduced the theoretical number of qubits needed to break RSA encryption—from 20 million to just 1 million. This development signals a dramatic acceleration in quantum computing capabilities, bringing once-distant fears much closer to reality.
While Bitcoin doesn’t use RSA encryption, the shockwaves from this advancement extend to all digital security systems. The real question: could Bitcoin’s own cryptographic foundations be next?
How Bitcoin’s Security Could Be Impacted by Quantum Advancements
Bitcoin’s cryptographic infrastructure relies on the Elliptic Curve Digital Signature Algorithm (ECDSA), and more recently, Schnorr signatures. These provide superior privacy, faster processing, and efficient multi-signature aggregation compared to older systems like RSA. However, despite these improvements, they are not immune to the power of a quantum computer.
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The concern stems from Shor’s Algorithm—a quantum algorithm developed in 1994 that can, in theory, break ECDSA and Schnorr-based cryptography if executed on a quantum machine with sufficient power. Currently, no such computer exists. But with quantum machines already exceeding 100 qubits and error correction technology rapidly maturing, the theoretical is inching toward the practical.
The New York Digital Investment Group (NYDIG) has warned that while Bitcoin is safe from today’s quantum computers, it may not remain so a decade from now. The crypto community must understand that Bitcoin’s long-term resilience is tied not just to hash rates and miners, but to advances in quantum-resistant encryption.
Can Post-Quantum Cryptography Secure Bitcoin?
To stay ahead of future threats, researchers and developers are working on Post-Quantum Cryptography (PQC)—new encryption methods designed specifically to withstand attacks from quantum computers. But integrating PQC into Bitcoin is no small task.
The NYDIG report outlines several obstacles:
- Larger cryptographic keys and signatures, which could bloat Bitcoin’s blockchain
- Slower transaction speeds, undermining scalability
- Potential compatibility issues with existing wallet infrastructure and nodes
Moreover, Bitcoin’s decentralized nature makes consensus around protocol upgrades especially complex and time-consuming. Still, the urgency for such changes is growing. The crypto industry may soon face a fork in the road: innovate or risk exposure to one of the biggest technological shifts of the century.