Investing.com - Quantum computing could pose a potential threat to Bitcoin and other cryptocurrencies, an expert in computer engineering has told analysts at Mizuho (NYSE:MFG) Securities.
In a note on Monday, the Mizuho analysts said they had held a call with Taqi Raza, an Assistant Professor in the Department of Electrical and Computer Engineering at the University of Massachusetts Amherst. During the call, the analysts asked Raza about the possible implications of quantum computing on the security of Bitcoin, the world's most recognizable digital token.
Raza argued that quantum computing -- which is said to be able to provide solutions to problems at greater speeds than traditional silicon-based computers -- could have the power to "break the cryptographic security methods" that underpin cryptocurrency systems, Raza told the analysts.
In particular, quantum computing could be a possible risk to the so-called "Elliptic Curve" digital signature algorithm, a type of public-key cryptography method, Raza said, according to the analysts.
Security of "SHA-256" authentication -- a mathematical function converting digitaldata into an output string using a fixed number of characters -- could also be at risk, Raza noted.
Two key breakthroughs around error correction and software could make quantum computing a reality, Raza added, according to the analysts. But Raza said there are actions that the people working with the blockchain -- the database shared across a network of computers that helps underpin cryptocurrencies like Bitcoin -- can take to enhance security.
"In the short-term, the community could use hybrid security models, which would combine both quantum and classical encryption models," Raza told the Mizuho analysts. "Long-term solutions include post quantum cryptography (PQC), which would involve designing newer algorithms that are quantum resistant."