How could quantum computing threaten Bitcoin's security?

Quantum computing threatens Bitcoin's security primarily by breaking the cryptographic algorithms that protect transactions and wallets. Bitcoin relies on elliptic curve cryptography (ECC) for digital signatures and SHA-256 for hashing. Quantum computers, using algorithms like Shor's algorithm, could efficiently solve the mathematical problems underlying ECC, allowing attackers to derive private keys from public keys. This would enable them to forge signatures, steal funds from wallets, and potentially double-spend coins. While current quantum computers lack the power to do this, advancements could make Bitcoin vulnerable within years. The threat is particularly acute for addresses that have been reused or exposed publicly, as their public keys are visible on the blockchain. To mitigate this, Bitcoin may need to transition to quantum-resistant cryptography, such as lattice-based or hash-based schemes, but this requires community consensus and technical upgrades. Experts warn that Bitcoin could be an early target due to its high value and reliance on vulnerable cryptography.

📖 Read the full article: Nobel-winning physicist warns bitcoin could be early target of quantum computing - CoinDesk