Tech mogul Elon Musk is convinced that quantum computers could enable the recovery of lost cryptocurrency wallet passwords — an additional aspect of computing technology amid all the recent hype about the significant risks it poses to blockchain and cryptocurrencies.
Blockchain Analytics estimates that at least 3-4 million bitcoins (BTC), or 15%-20% of total circulation, have been irretrievably lost. Additionally, the number of Bitcoins lost due to forgotten or misplaced seed phrases exceeds that lost from exchange hacks.
source: Demandsig
A quantum computer capable of resolving private keys given known public keys could therefore be useful to this population. However, wallet inactivity does not necessarily mean that the owner has forgotten/lost their password.
Quantum developments and the crypto ecosystem
Musk’s statement came as a humorous response to Google’s recent statements researchwhich concluded that Bitcoin could be hacked with far fewer quantum resources and less time than previously expected.
Many blockchains have taken the quantum threat seriously and are actively upgrading their cryptography to make it quantum-resistant.
Ethereum has developed quantum resistance Road mapwhile Cardano has a partner With experts from Google, Microsoft and Linux for the same purpose. Bitcoin lags behind on this front in terms of timelines, contingency plans, and dedicated teams.
However, crypto proponents Michael Sialor and Changpeng Zhao remain so Confident That cryptocurrencies will escape quantum risks.
Risks versus benefits
The timeline for achieving quantum capabilities at any level is widely expected to be between 2029 and 2035. While some risks are shaking the cryptocurrency community, it may be worth considering some of the benefits that such progress may bring in the post-quantum era. These include:
- Enhancing security through true randomness in the generation of encryption keys and non-copyable digital currency (quantum money).
- Scalability through parallel transaction processing and faster block termination.
- Real-time smart contracts and complex logic.
- Reducing energy consumption of proof-of-work networks.
- Reduced transaction costs after improving network speed and efficiency.
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