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There is a growing concern within the cryptocurrency industry that quantum computing will eventually become powerful enough to break the encryption algorithms protecting crypto blockchains. Although quantum computing poses an existential threat to cryptocurrencies, experts believe it could still take years to materialize. Nevertheless, crypto entrepreneurs and developers are not sitting by idly. They’ve already started working on developing quantum-resistant cryptocurrencies designed to withstand quantum attacks through special designs and modern encryption algorithms. Well, some of you might be wondering: Are there any quantum-resistant cryptos in existence today? Let’s find out.
Quantum-Resistant Cryptos: Summary
Calls to create quantum-resistant cryptos are getting louder by the minute. The future when quantum computing becomes capable enough to threaten the existence of blockchains, including that of Bitcoin (BTC) and Ethereum (ETH), is not a matter of if but when. Which cryptocurrencies will survive quantum computers? The answer to this question will ultimately depend on how cryptocurrency projects evolve and upgrade their defense against the incoming threat. Like any technology, cryptocurrencies face a real risk of becoming obsolete if they fail to acknowledge and adapt to these challenges.
In this article, we will highlight cryptocurrency projects that have already started preparing for this future. We will also discuss how quantum computing affects cryptocurrency security. By the end of this article, you will learn the difference between traditional cryptocurrency protocols and new-age quantum-resistant blockchain projects.
Understanding the Quantum Threat to Cryptocurrencies
Quantum computing is an emerging technology in the field of computer science that is capable of solving complex problems and processing information beyond the ability of classical computers.
Key Takeaways
The key difference between quantum computing and classical computers is the way the two store and process data. Classical computers use zeroes and ones, known as binary bits. Meanwhile, quantum computers encode extra data by using quantum bits or qubits. According to IBM, qubits are created by manipulating and measuring quantum particles, which are the smallest known building blocks in the universe. When combined, qubits can scale exponentially.
Experts believe that quantum computing will one day become powerful enough to break encryption algorithms that protect data stored on cryptocurrency blockchains. The threat of quantum computing encompasses crypto wallet hacks, blockchain transaction manipulation, double-spending, and 51% attacks. Some fear that even Bitcoin is at great risk. To learn if Bitcoin can be hacked, check out 99Bitcoins’ investigation into the question, “Can Quantum Computers Hack Bitcoin?”
Industry experts believe that it would take at least a decade for quantum computing technology to reach a level that poses a real threat to cryptocurrencies. Google, IBM, Fujitsu, and D-Wave are among the global companies developing quantum computing technology. According to IBM, the company expects to deliver its first fault-tolerant quantum computer by 2029 and predicts that it will unlock the full power of quantum computing at scale by 2033.
Why Most Cryptos Won’t Survive Quantum Computing?
Cryptocurrencies that implement traditional encryption algorithms are extremely vulnerable to quantum computing. At the moment, most cryptocurrencies, including Bitcoin and Ethereum, use digital signature technology such as the Elliptic Curve Digital Signature algorithm (ECDSA) to verify the ownership of a crypto wallet address and the funds held in it. There is fear that quantum computers will soon be able to break ECDSA, resulting in wallet hacks and crypto theft. Cryptocurrencies that fail to upgrade their protocols to incorporate quantum-resistant encryption algorithms will not survive.
However, it is easier said than done. At a social level, decentralized communities behind cryptocurrency projects must come together to agree on and implement necessary quantum-proof upgrades. If there is a division within a community, a blockchain could bifurcate into different versions (one that implements quantum-proof and one that does not). But we shouldn’t forget that the hard-forking of blockchains to implement these upgrades carries significant risk due to the uncertainties and unknown consequences involved.
Cryptos That Can’t Be Hacked By Quantum Computers
Several crypto projects are actively working towards a post-quantum future. These projects are adopting varied approaches. Some have chosen to implement tried-and-tested quantum-proof encryption algorithms, while others are focusing on creating flexible and customizable infrastructure that can integrate new quantum-resistant solutions as they are developed.
Which cryptocurrencies will survive quantum computers, you ask? Here are five quantum-resistant cryptos that have either already implemented post-quantum solutions or have prepared their protocols to be quantum-ready.
1. Quantum Resistant Ledger
Quantum Resistant Ledger (QRL) is a blockchain that claims to be the first cryptocurrency network capable of withstanding quantum-computer attacks. Quanta is the native token of the QRL blockchain.
Launched in 2018, QRL uses hash-based digital signatures that are resistant to quantum computing attacks. To be specific, QRL uses eXtended Merkle Signature Scheme (XMSS) hash-based digital signature system instead of ECDSA.
Inspired by Bitcoin, QRL currently implements the proof-of-work (PoW) consensus mechanism to bring together a decentralized community of miners to verify and process crypto transactions. QRL plans to transition into a proof-of-stake blockchain called QRL Zond for better energy efficiency and scaling.
Security Architecture of QRL
As we have learnt, the biggest threat of quantum computers to cryptocurrencies is their potential ability to derive private keys from known public keys for cryptocurrencies that use digital signature schemes such as ECDSA.
QRL counters this by using a hash-based digital signature system called XMSS, which uses one-time signatures for quantum resistance. XMSS updates the state of the private keys each time a digital signature is generated. Since the corresponding private key to a public key keeps refreshing after every use, quantum computers will not be able to decipher the correct private keys from known public keys. The National Institute of Standards and Technology, in a research paper, explains,
In order to avoid reuse of an OTS (one-time signature) key, the state of the private key must be updated each time a signature is generated. If the private key is stored in non-volatile memory, then the state of the key must be updated in the non-volatile memory to mark an OTS key as unavailable before the corresponding signature that was generated using the OTS key is exported.
2. Nervos Network
Nervos Network is a modular blockchain network that separates its core infrastructure into two layers: an underlying verification layer called Common Knowledge Base (CKB) that behaves like an L1 layer and a secondary layer for high-performance transactions. The blockchain has a native token called CKB. Nervos’ layered architecture is designed to separate state and computation to allow greater flexibility and scalability to each layer.
The reason why we are talking about the high degree of flexibility enjoyed by Nervos is that it is this property that allows Nervos to incorporate quantum-resistant technology as they are developed.
What Makes Nervos Network Quantum-Resistant?
Nervos Network derives its quantum computing-resistant design through the use of a unique accounting model called the cell model and a RISC-V-based virtual machine.
The cell model is an accounting model used by CKB that combines the best aspects of UTXO (used by Bitcoin) and account models (used by Ethereum). According to Nervos, the cell model increases the adaptability of the blockchain and allows it to upgrade its basic cryptographic primitives to quantum-resistant ones without undergoing a hard fork.
Further, Nervos uses a RISC-V architecture for its virtual machine, which is known to be simple and efficient in design. The company says that one of the key features of RISC-V architecture is its modularity, which allows a high degree of customization and enables developers to use any programming language or cryptographic primitive when building smart contracts on CKB. As per the organization,
This crypto-agnosticism allows for the easy incorporation of quantum-resistant cryptographic algorithms when the need arises, ensuring that the Nervos Network remains secure in a post-quantum computing world.
3. Cellframe
Cellframe calls itself a “service-oriented blockchain network” that makes it easy for developers to build second-level protocols on top of it for dedicated services. Cellframe’s architecture is structured as a dual-layer sharding, where the first layer can launch customizable chains and tokens.
The protocol is designed for the quantum era. By keeping its architecture flexible, Cellframe looks to adapt to the upcoming threat posed by quantum computers that are expected to break encryption algorithms that are used today.
What Makes Cellframe Quantum-Resistant
According to Cellframe’s whitepaper, its protocol does not rely on any particular signature algorithm or a consensus mechanism. This design gives Cellframe the room to safely change the type of encryption algorithm it uses to beef up crypto security against quantum attacks as and when needed.
Cellframe says it has selected post-quantum algorithms such as NewHope, NTRU, Frodo, SIDH, and Picnic to begin with. Meanwhile, the default encryption algorithm was the Crystal-Dilithium digital signature, a lattice-based digital signature algorithm selected by NIST for standardization as a post-quantum cryptography algorithm.
4. Algorand
Another cryptocurrency that claims to be quantum-ready is a layer one (L1) blockchain called Algorand (ALGO).
It is a proof-of-stake blockchain founded by computer scientist and Massachusetts Institute of Technology (MIT) professor Silvio Micali. The idea for Algorand was first conceived in 2017 in Cambridge, Massachusetts, among a group of cryptographers and engineers led by Micali. At the time, proof-of-work was the most popular consensus mechanism. Algorand looked to improve on the scalability limitations and energy consumption concerns of the proof-of-work mechanism.
The crypto project’s innovative and forward-looking approach was highlighted in 2022 when Algorand took the first steps to post-quantum readiness by securing its history of transactions by using cryptographic proofs signed using a NIST-endorsed digital signature algorithm called FALCON.
Check out our “How to buy Algorand” guide if you want to purchase this crypto. In case you are wondering where ALGO will go in the next five years, you might find our “Algorand Price Prediction” very helpful.
What Makes Algorand Quantum-Resistant Crypto
Algorand’s first step to post-quantum readiness began in 2022 when the blockchain project introduced state proofs. A state proof is a cryptographic proof that attests and compresses the ledger’s state changes every 256 rounds. Algorand’s state proofs are signed using the FALCON signature algorithm.
FALCON is a cryptographic signature algorithm that is designed to be resistant to quantum computers. According to official documents, FALCON is said to be post-quantum secure as the algorithm guarantees negligible leakage of information on the secret key up to a “practically infinite number of signatures.” In 2022, FALCON was selected by the NIST as a post-quantum cryptography algorithm.
This crypto project is also working on allowing the Algorand virtual machine to verify FALCON signatures. Although the upgrade is not live on its mainnet yet.
5. Internet Computer
Closing our list of quantum-resilient blockchains is Internet Computer (ICP), a cryptocurrency project that wants to create a “world computer” for users to own their data and for applications to run without centralized intermediaries.
ICP is managed and developed by a decentralized community of developers led by an organization called DFINITY Foundation. ICP launched its mainnet in May 2021 by conducting a token generation and distribution event for its native token ICP.
Plans to make ICP a quantum-resistant cryptocurrency began as early as 2021 when developers Jens Groth and Andrea Cerulli asked the ICP community to participate in technical discussions on making the blockchain quantum secure.
Read our ‘How to Buy ICP’ guide if you want to own this crypto. You can also check out the ICP price prediction for 2025.
What Makes ICP Safe From Quantum Attack
ICP is not quantum-secure yet. However, the blockchain project has recognized the threat of the futuristic technology, and its community has actively held discussions about quantum resistance for the ICP.
In December 2021, the ICP community approved and adopted a long-term research and development plan, Proposal 35660, to ensure that the Internet Computer is secured against quantum-capable attackers. As part of the plan, ICP is now evaluating the quantum computing landscape annually and continuously monitoring developments to make informed choices of tools to rely on in the endeavour. The plan also sought ICP to invent appropriate post-quantum schemes and prove that such schemes are secure against quantum computing threats. In December 2024, Jan Camenisch of DFINITY Foundation said,
Notably, ICP was designed with the flexibility to replace cryptographic schemes easily if needed (this is often called crypto agility). The most significant inconvenience when swapping the cryptographic algorithms will be that the public key of the Internet Computer will change (having said that, changing public keys is a normal procedure in key management).
“We are, and have always been, closely monitoring the situation and will propose replacements for these algorithms to the NNS (Network Nervous System, a DAO governing ICP) at the appropriate time,” Camenisch added.
Quantum-Resistant Cryptos – What Sets Them Apart?
Cryptocurrencies that claim to be quantum-resistant differentiate themselves from traditional cryptocurrencies by utilizing post-quantum encryption algorithms, such as Crystal-Dilithium and XMSS. At the time of writing, most projects in the cryptocurrency sector rely on the ECDSA encryption algorithm to create and verify public-private key pairs. Unlike post-quantum encryption algorithms, quantum technology will be able to derive private keys from public keys that have been created using the ECDSA encryption algorithm.
Some projects are taking different approaches to quantum resistance. For example, Nervos Network has designed its architecture to prioritize flexibility and customizability, enabling the protocol to implement quantum-proof technology as and when the need arises.
Is the Quantum Threat to Crypto Real?
Yes, quantum computing is a legitimate threat to cryptocurrencies. Quantum computers will eventually become powerful enough to hack the encryption algorithms that protect cryptocurrency protocols. According to experts, the most evident threat is the future capability of quantum computers to derive private keys from public keys that become visible after a wallet address is used for an outbound transaction.
Private keys prove ownership and provide control over cryptocurrencies held in a wallet. If an attacker obtains the private keys, they gain access to the cryptocurrencies held in the wallet. Therefore, there is a growing need to future-proof cryptos against quantum attacks.
Experts predict that quantum computing will become capable of hacking cryptocurrency protocols within the next decade. According to Isaac Kim, assistant professor of computer science at UC Davis, in conversation with Presto Research, the “first biggest warning sign” would be that the world sees a quantum computer with roughly 100 logical qubits and the logical error rate of< 10⁻⁵. It simply means that if we succeed in building a quantum computer with around 100 reliable qubits (called logical qubits, which are corrected for errors) and a very low error rate, it would be a significant milestone. We can also take it as a warning sign for the security of current encryption systems.
How Blockchain Community Is Preparing for Quantum Threats?
Here is how the blockchain community is preparing for quantum threats:
Experts’ Take On Quantum-Resistant Cryptos: 99Bitcoins Exclusive
In an exclusive emailed interview with 99Bitcoins, Carlos Kuchkovsky, CEO of quantum computing solutions platform QCentroid, said that computers powerful enough to break cryptocurrencies are “several years away.” However, Kuchkovsky added that it was only a matter of time before quantum computing becomes capable enough to threaten not only cryptocurrency blockchains but also power grids, banking systems, and even water treatment infrastructure. Kuchkovsky further added,
For a quantum computer to break Bitcoin’s cryptographic protections (like ECDSA), it would need around 10,000-100,000 logical qubits, depending on coherence times and error correction. We’re not there yet, and recent claims of “Bitcoin-breaking” quantum attacks haven’t held up to scientific scrutiny. So while quantum brute-force attacks are possible in theory, they remain impractical for now.
When asked how Bitcoin and other crypto blockchains can protect themselves in the post-quantum future, Kuchkovsky said that “real challenge” was not technical but social and economic, as the Bitcoin mining community would need to agree on upgrades.
That kind of global consensus is tricky but not impossible, especially if the threat becomes imminent. Blockchains are, in some ways, easier to update than legacy systems with a lot of hidden cryptographic dependencies.
Kuchkovsky closed the interview by saying that the crypto industry should keep an eye out for a “tipping point” when companies demonstrate reliable manufacturing of logical qubits at scale. Kuchkovsky concluded,
If someone starts showing exponential improvements in producing stable, error-corrected qubits – and publishing credible benchmarks, that’s when you know we’re getting close. Until then, this is more a strategic planning issue than a short-term threat.
Challenges of Making Quantum-Resistant Cryptos
Here are the key challenges of making quantum-resistant cryptos:
Conclusion: Quantum-Resistant Cryptos
The threat of quantum computing in blockchain and cryptocurrency industries is no longer a matter of debate. Experts agree that it is only a matter of time before quantum computing matures and becomes powerful enough to break popular encryption algorithms used today. The projects mentioned in this article have already begun preparing for such a future. Some have chosen to tackle the issue head-on by implementing quantum-resistant cryptography, while others have taken a measured approach to create a protocol flexible enough to incorporate modern solutions depending on the need of the hour.
See Also:
- What is Wrapped Bitcoin (wBTC): A Beginner’s Guide
- De-dollarization: What It Means for Bitcoin & Stablecoins?
- Crypto Volatility Guide: How to Protect Your Portfolio
References
- “Post-Quantum Cryptography and Blockchain.” Algorand, https://algorand.co/technology/post-quantum.
- “Falcon Digital Signature Algorithm.” Falcon, https://falcon-sign.info/.
- “Post-Quantum Cryptography: Selected Algorithms.” NIST, https://csrc.nist.gov/Projects/post-quantum-cryptography/selected-algorithms.
- “What Is RISC-V?” Nervos Knowledge Base, https://www.nervos.org/knowledge-base/what_is_riscv_%28explainCKBot%29.
- “Quantum Resistance and Blockchain.” Nervos Knowledge Base, https://www.nervos.org/knowledge-base/quantum_resistance.
- “Quantum Computing: What Is It?” Caltech Science Exchange, https://scienceexchange.caltech.edu/topics/quantum-science-explained/quantum-computing-computers.
FAQs
What is a quantum-resistant cryptocurrency?
A quantum-resistant cryptocurrency refers to a cryptocurrency protocol that implements encryption algorithms that cannot be broken by powerful quantum computers.
Why do we need quantum-resistant cryptos?
We need quantum-resistant cryptos because experts predict that quantum computers will one day become powerful enough to break encryption algorithms that protect crypto wallets and the funds stored in them.
How can quantum computers threaten cryptocurrencies?
Experts predict that quantum computers will become powerful enough to derive private keys of a crypto wallet whose public keys are exposed.
Are quantum-resistant cryptos completely safe?
No, quantum-resistant cryptos are not completely safe. New threats can emerge as quantum technology advances.
Which cryptos are considered quantum-resistant?
Some cryptocurrencies claim to be quantum-resistant, such as QRL, Nervos, and Cellframe. However, we will only know when quantum computers will become powerful enough to break traditional encryption algorithms that protect most cryptocurrency protocols.
Can Bitcoin become quantum-resistant?
Yes, Bitcoin can become quantum-resistant by upgrading its encryption algorithm to a more quantum-proof one.
In what way do quantum-resistant cryptos differ from regular cryptos?
Cryptocurrencies that claim to be quantum-resistant differentiate themselves from traditional cryptocurrencies by utilizing post-quantum encryption algorithms.
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