Summary
- The industry said quantum computers could break existing encryption systems once commercialized, leaving digital assets among the first targets.
- The industry said commercially viable quantum computers capable of neutralizing cryptographic systems could emerge around 2029.
- Deutsche Digital Assets said Bitcoin's governance structure, which requires consensus from investors worldwide, is a risk.
As concern grows that commercial quantum computers could break existing encryption systems, digital assets including Bitcoin may be among the first targets, according to an industry analysis.
CoinDesk reported on July 27 that Quantum Xchange Chief Executive Officer Eddy Travia said digital assets may face quantum threats first because of their decentralized structure. A breach of Bitcoin's cryptography would mark the point at which the quantum-computing threat becomes a serious reality, he added.
The warning comes even though no quantum technology yet exists that can break Bitcoin or Ether. Major companies currently project that commercially viable quantum computers capable of defeating cryptographic systems could emerge by 2029.
Industry concern is focused less on blockchain encryption itself than on governance. Deutsche Digital Assets said in a report that financial institutions such as JPMorgan can adopt new cryptographic systems with board approval, while Bitcoin is a network that requires consensus from investors around the world.
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