Quantum Computing is a real threat to Crypto, and slowly moving administrative processes run the risk of leaving block chains vulnerable, according to Colton Dillion, a co-founder of Quip Network, which offers quantum-resistant safes for storing digital assets.
While the technology, which uses the quantum states of subatomic particles to perform calculations instead of transistors and binary code, is still in its infancy, companies such as Google and Microsoft continue with research and development. The goal is a huge step in speed that makes difficult calculations, such as crack coding, as used to protect block chains, faster and easier.
And when Quantum Computing becomes available, it is unlikely that every attacker will immediately announce his presence.
“The threat will not start with Satoshi’s keys that are stolen,” Dillion said in an interview. “The real quantum attack will look subtle, quiet and gradually, such as whales that casually move. By the time everyone realizes what happens, it will be too late.”
The Doomsday scenario of Dillion comprises a quantum computing double outgoing attack. In theory, Kwantum Computing can reduce mining power needed for a traditional attack from 51% to around 26%, Dillion said.
“So now you have compromised the 10,000 largest portfolios. You rinse the chain back, liquidate those 10,000 largest portfolios and then spend all transactions, and now you really have a nuclear bomb,” is how he imagines it.
The industry naturally works on finding a solution.
Bitcoin developer Agustin Cruz, for example, suggested QREDAmp, a Bitcoin improvement proposal (BIP) that requires a hard-fork migration to quantum security addresses. Quantum Startup BTQ has suggested replacing the proof-of-work consensus system that is completely based on the consensus of the Kwantum Native.
The problem is that the proposals in the community must be approved. Blockchain -Governance, such as Bitcoin improvement proposals (BIPs) and their Ethereum equivalents, Ethereum improvement proposals (EIPs), tends to maintain politics, making it a long, inherent care process.
For example, the recent resolution of the Bitcoin community on the on_return function was in the making for years, with months of developer debates on what is considered as the “correct” use of the blockchain. The upgrades of Ethereum, just like the merger, were also confronted with long debates and delays.
Dillion argues that the Crypto administrative process exposes dangerously because the threats of Kwantum Computing will evolve much faster than the protocols can respond.
“Everyone tries to do this from top to bottom by starting with a bip or an egg and getting everyone buy-in together. But we think this is a very difficult, heavy lift,” he said.
The quantum -resistant safes from Quip Network are aimed at bypassing political slowness by allowing immediate acceptance at user level without the need for protocolupgrades. The safes use hybrid cryptography and combine classic cryptographic standards with quantum-resistant techniques to offer blockchainagnostic security.
In fact, they allow the whales, holders of large quantities of a cryptocurrency, to secure their stock while waiting for the machinations of Blockchain -Governance to get it together. Crypto communities cannot afford relaxed debates, he argues.
“The BIP and EIP processes are great for governance, but terrible for quick response of the threat,” said Dillion. “When Kwantum strikes, attackers do not wait for the community’s consensus.”
Colton Dillon speaks at the IEEE Canada Blockchain Forum, part of Consensus 2025 in Toronto. The IEEE is a consensus knowledge partner.
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