Key Takeaways:
- BlackRock’s quantum computing warning has reignited concerns about Bitcoin’s outdated cryptography.
- XRP and XLM are emerging as early leaders in preparing for a quantum-resilient future.
- U.S. institutions are fast-tracking quantum-safe encryption standards, hinting at an approaching shift.
Stellar Rippler, a researcher in the cryptographic field, recently ignited debate on X (formerly Twitter) after highlighting BlackRock’s internal concerns about quantum computing’s impact on digital assets, particularly Bitcoin.
BlackRock experts opine that the improvements in quantum computing can one day outdate the classic cryptographic algorithms such as SHA-256 and ECDSA. They are the very foundations for Bitcoin’s wallet security and the integrity of transactions.
Quantum supremacy, achieved by Google in 2019 with a 53-qubit computer, is already making theoretical anxieties seem well-founded. IBM aims for a 1,000-qubit computer for 2025.
It is aligned with the timeline of the U.S. National Institute of Standards and Technology (NIST), which is planning to make available four quantum-resistant encryption standards by 2025. All this is converging, putting stress on older networks such as Bitcoin to make adjustments for quantum risks sooner rather than later.
However, upgrading Bitcoin is not an easy feat. Any transition to quantum-resistant protocols would most likely be done with a hard fork or a soft fork. It involves international consensus from developers, complete infrastructure migration for wallets, and huge educational efforts for users—all serious barriers in a decentralized network.
XRP and XLM Gain Spotlight as Quantum-Ready Contenders
Unlike Bitcoin, both Ripple’s XRP and Stellar’s XLM were designed with upgradeability in mind. XRP uses a specialized consensus algorithm and can be upgraded more easily with validator agreement, which previously allowed for smooth protocol upgrades.
In the meantime, Stellar’s XLM is already using the Ed25519 signature scheme, a more cryptographically agile system than Bitcoin’s use of ECDSA, though not quantum-resistant. The Stellar Development Foundation is already engaged with post-quantum planning and is noted as one of the only organizations preparing for the post-quantum world.
Both networks also possess intrinsic governance and upgrade mechanisms for future support of next-gen digital signature schemes such as CRYSTALS-Dilithium, which is presently being evaluated by NIST. Both are therefore poised to upgrade more efficiently and timely than Bitcoin to accommodate the upcoming cryptographic transitions.
Countdown to the Quantum Crypto Evolution
Post-Quantum Cryptography (PQC) is no longer something out of a sci-fi movie. With the federal government of the United States supporting algorithms such as CRYSTALS-Kyber for encryption and CRYSTALS-Dilithium for digital signatures, the move towards quantum-resistant infrastructure is becoming a priority at the national level.
Time is running out for Bitcoin. But for XRP and XLM, it is a moment in the making, one that can catapult them into positions of prominence in a resecured blockchain world.
Related Reading | Cardano Price Prediction: ADA To Flip DOGE But Could It Be Beaten To Top 5 By ‘XRP 2.0’