Quantum computers pose a threat to the security of Bitcoin and Ethereum, according to a recent assertion by a researcher.
In the ever-evolving world of blockchain technology, a significant shift is underway as classical cryptographic algorithms like ECDSA and RSA are set to be phased out by 2030 or 2035 for blockchains supporting sovereign assets, national treasuries in crypto, ETFs, or CBDCs. This mandate, issued by various governments, aims to ensure the security of these critical financial systems in the face of emerging quantum threats.
One such advancement comes from Sui Research, which has dropped a major breakthrough in quantum transition for some blockchains. However, this breakthrough does not apply to Bitcoin and Ethereum, the two giants of the blockchain landscape.
The reason lies in the vulnerabilities of ECDSA, the digital signature scheme used by Bitcoin and Ethereum. EdDSA, on the other hand, is a newer digital signature scheme that avoids common ECDSA pitfalls, such as compromised security from weak random number generation, nonce reuse, and side-channel leakage. Blockchain networks using EdDSA, such as Solana and Sui, are better equipped to withstand quantum threats compared to older chains like Bitcoin and Ethereum.
This advantage is rooted in EdDSA’s design, which inherently avoids vulnerabilities that quantum algorithms exploit in ECDSA. For instance, EdDSA avoids weak random number generation and nonce reuse issues present in ECDSA, making it more resilient against quantum attacks like those using Shor’s algorithm.
Moreover, EdDSA chains have a smoother, more secure upgrade path to quantum-safe cryptography without needing users to change wallet addresses or keys. This is made possible by EdDSA’s method of deriving private keys from a seed in a way that enables zero-knowledge proofs and backward compatibility during upgrades. In contrast, Bitcoin and Ethereum, which rely on ECDSA, face significant technical and logistical challenges—including risky hard forks and wallet migrations—to implement post-quantum security.
As the debate about quantum-resistant algorithms continues, the dispute in the Ethereum community over whether or not to rollback the blockchain after a hack in 2015 could be a precedent for a potential split in Bitcoin over quantum-resistant upgrades. The real challenge in implementing quantum-resistant algorithms in Bitcoin and Ethereum lies in the sheer number of wallets that have come into existence since the launch of those blockchains.
In a post-quantum world, even holding private keys may not matter due to the inability to generate a post-quantum secure proof of ownership. As more corporations and governments establish Bitcoin treasuries, the pressure to meet post-quantum security standards is growing.
The report by Mysten Labs argues that blockchains using the EdDSA signature scheme, such as Solana, Sui, Near, and Cosmos, are better prepared for quantum threats. Kostas Chalkias, co-founder and Chief Cryptographer at Mysten Labs, stated that this advantage positions EdDSA-based networks like Solana and Sui to lead the way in the era of quantum-resistant blockchains.
[1] https://t.co/XdsC90zQi9 [2]
- The ongoing transformation in blockchain technology includes the planned phase-out of classical cryptographic algorithms like ECDSA and RSA for blockchains supporting sovereign assets, national treasuries in crypto, ETFs, or CBDCs.
- Sui Research has announced a significant breakthrough in quantum transition for some blockchains, but this advancement does not affect Bitcoin and Ethereum.
- EdDSA, a newer digital signature scheme, is less vulnerable to common ECDSA pitfalls, such as compromised security from weak random number generation, nonce reuse, and side-channel leakage.
- Blockchain networks using EdDSA, such as Solana and Sui, are more resilient against quantum threats compared to older chains like Bitcoin and Ethereum.
- EdDSA's design inherently avoids vulnerabilities that quantum algorithms exploit in ECDSA, making it more secure against quantum attacks.
- Bitcoin and Ethereum, which rely on ECDSA, face significant challenges in implementing post-quantum security, including risky hard forks and wallet migrations.
- The report by Mysten Labs suggests that blockchains using the EdDSA signature scheme, like Solana, Sui, Near, and Cosmos, are better prepared for quantum threats.
- As more corporations and governments establish Bitcoin treasuries, the pressure to meet post-quantum security standards is growing, and holding private keys may not offer security in a post-quantum world.
