Analytical Exploration of the Effects and Implications of Quantum Computing on Cryptocurrency Systems

DOI

10.2991/978-94-6463-300-9_8How to use a DOI?

Keywords

Cryptocurrency; Mining; Blockchain; Quantum algorithms; Quantum security

Abstract

Cryptocurrencies have gained significant importance in the financial market, and the emergence of quantum computers has raised concerns about their impact on cryptocurrency systems. This article aims to analyze these impacts, focusing primarily on the effects on the mining process, threats to blockchain security, and potential solutions to mitigate these effects. Through an extensive review of articles and theoretical research, this article uncovers significant potential effects on cryptocurrency systems resulting from quantum computing. The article highlights that the advent of quantum computing could lead to a drastic acceleration of the mining process, operating in quadratic time. Additionally, it raises concerns about the security vulnerabilities that quantum attacks pose to blockchain systems, as Shor's algorithm poses a considerable threat to the cryptographic mechanisms upon which cryptocurrencies rely. Grover's algorithm, on the other hand, has the potential to significantly reduce the time and energy consumption involved in mining. Although new cryptographic methods, such as Post-Quantum Cryptography, have been proposed to withstand quantum attacks, their effectiveness can only be theoretically evaluated until practical quantum computers become available. At present, the impact of quantum computing on the real world remains limited due to the nascent state of quantum technology. However, with IBM's plan to develop a 100,000-qubit system by 2033, the potential threats to cryptocurrency systems cannot be disregarded.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yuanyi Zhang
PY  - 2023
DA  - 2023/11/27
TI  - Analytical Exploration of the Effects and Implications of Quantum Computing on Cryptocurrency Systems
BT  - Proceedings of the 2023 International Conference on Image, Algorithms and Artificial Intelligence (ICIAAI 2023)
PB  - Atlantis Press
SP  - 73
EP  - 81
SN  - 2352-538X
UR  - https://doi.org/10.2991/978-94-6463-300-9_8
DO  - 10.2991/978-94-6463-300-9_8
ID  - Zhang2023
ER  -