Cryptocurrency companies looking for strong security may soon need to pay attention to the first practical applications of quantum computers from IBM. The computer giant will present 10 new projects that use algorithms used in supercomputers capable of breaking traditional security measures.
IBM will launch several projects that combine quantum calculations and conventional supercomputing in what is believed to be the first practical application of quantum computers. Unlike traditional machines that store information in ones and zeros, quantum computers use transient subatomic elements called qubits to store data.
The potential of quantum algorithms
The IBM project reportedly marks the first time a company can control qubits so that the data they contain can be used in scientific calculations. This advance will allow the development of quantum algorithms. However, commercial applications are still some way off, according to IBM vice president of quantum Jay Gambetta.
“It will be some time before we move from scientific value to, say, commercial value. But in my opinion, the difference between research and commercialization is becoming narrower,” he stated.
The technology is expected to solve problems that were previously unsustainable for traditional computers, such as the so-called salesman problem. The puzzle is to minimize the distance a salesperson travels on local roads while visiting different parts of the same region.
Quantum computing versus traditional computing. Source: CB Insights
Chinese researchers claimed to have found a way to optimize Schnorr’s algorithm for factoring large prime numbers using a quantum computer in January. While his research was found to be theoretically sound, his findings were never tested experimentally.
Quantum implications for cryptographic security
IBM’s efforts may threaten encryption algorithms used in banking and by governments. Japanese technology giants Fujitsu Siemens and the Riken Institute announced that they would launch their quantum computer in 2023. However, there is no word yet on commercial applications, although the project has uses in research and development.
Now, the development of quantum algorithms, catalyzed by IBM’s efforts, could threaten long-standing cybersecurity standards such as the 256-bit asymmetric encryption standard. This could jeopardize crypto assets held on exchanges that use the standard to protect customer information.
Read More: 9 Crypto Wallet Security Tips to Protect Your Assets
The danger is magnified as banks show increasing interest in tokenizing real-world assets. Before assets can be exchanged, they must be held by custodians who employ reasonable security measures.
If custodians do not strengthen security, bad actors could tie asset holders to expensive assets such as property or cars. This loophole could expose owners and recipients to real-world theft or ransomware attacks to regain access to assets. It could also increase the chances of surveillance if governments can link all assets in the chain to individuals.
Read more: Top 10 Cryptocurrency Security Tips
