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Ethereum will not hide from quantum computers behind PoS shield

There are two mechanisms by which a quantum computer can violate a cryptoasset. Quantum computing is a threat that affects PoS and PoW equally. It is difficult to predict whether such a threat will emerge suddenly or gradually.

Quantum computing has long been considered the ‘bogeyman’ of Bitcoin (BTC). The popular fear is that just as secure as Bitcoin and other proof-of-work cryptoassets are in terms of standard cryptography, quantum computers could provide additional resources to break them.

Another popular assumption is that because they don’t use PoW, proof-of-stake cryptoassets such as Cardano (ADA), Polkadot (DOT), and Tron (TRX) (and possibly Ethereum (ETH)) are not as vulnerable to quantum computing. attacks such as networks such as Bitcoin, Bitcoin Cash (BCH) and Litecoin (LTC). However, according to several computer scientists and crypto experts, it is not a coin’s consensus mechanism that carries the greatest risk in terms of quantum computers, but rather its signature system.

In other words, since the vast majority of PoS cryptoassets also use (non-quantum) cryptographic signature systems to sign individual transactions, they are almost as vulnerable to quantum hacks as their PoW rivals. That said, the advent of sufficiently powerful quantum computers is still a long way off, while their emergence is likely to spur a widespread shift towards post-quantum cryptography.

51% attacks and signature attacks

The important point to make when considering whether PoS is less vulnerable to quantum computers is that there are two mechanisms by which a quantum computer could violate a cryptoasset:

The mechanism used to obtain the right to publish a block of transactions and to reach a distributed consensus (eg PoW or PoS)

The mechanism used to authorize individual transactions (usually with a public / private signature system)

It is the first mechanism to affect PoW more than PoS, with Bitcoin and other proof-of-work coins theoretically vulnerable to a 51% quantum computer-driven attack.

That said, Marek Naro?niak – a physics PhD student at New York University who has worked with Prof. Tim Byrne on research on quantum computers – explains that it’s still theoretical to talk about a 51% attack by quantum computers.

“If someone has a large enough quantum computer and wants to execute a 51% attack – consisting of outnumbering the remaining miners and producing invalid blocks – it should be a really huge quantum machine. This is because Bitcoin’s proof-of-work is based on a hash function for which there is no known efficient quantum algorithm [that it can reverse], ”he told Cryptonews.com.

But while Bitcoin’s weakness compared to PoS cryptoassets is still quite hypothetical, quantum computing poses another threat that concerns PoS and PoW in equal measure.

Even if consensus does not require cryptographic ‘work’ [in the case of PoS], it still relies on cryptography that currently relies primarily on elliptic curves that are vulnerable to quantum algorithms. validators can break and still mess with the consensus, ”said Naro?niak. France Crypto website is popular.

This is a concern echoed by other commentators. In an analysis by Deloitte, Bram Bosch wrote that about four million bitcoins are stored in addresses that use p2pk and p2pkh scripting, which is vulnerable to attacks from quantum computers.

“Currently, about 25% of the bitcoins in circulation are vulnerable to a quantum attack. Even if someone’s own bitcoins are safe, someone can still be affected if other people will not (be able to) take the same safeguards, ”he told Cryptonews.com.

Again, vulnerable scripting is something that can potentially affect both PoS cryptoassets and Bitcoin, even if quantum computers are far from being widely available. And even without older schemes like p2pk (h), Shor’s algorithm – a quantum computing algorithm – could be used to break many public key cryptography systems.

“If someone has a large enough and reliable quantum computer, it would be possible to crack the digital signature used to sign Bitcoin transactions. other people are transferred at will, “said Marek Naro?niak.

He addedn admits that the worst thing about this “is that it couldn’t even be detected”, and that PoS is just as vulnerable as PoW: “It would still be possible to produce transactions by breaking cryptographic signatures and producing transactions using someone else’s output. ”

Quantum-resistant solutions

Fortunately, current cryptographic research is more than aware of the theoretical threat posed by quantum computers, so you probably shouldn’t start selling all of your cryptocurrency just yet.

Researchers from Imperial College London published a paper in 2019 outlining a protocol that would allow Bitcoin users to move their money securely from non-quantum-resistant outputs to those who adhere to a quantum-resistant digital signature scheme.

In September 2020, Australian computer scientists from Monash Blockchain Technology Center and CSIRO’s Data61 developed what they described as ‘the world’s most efficient blockchain protocol that is … safe from quantum computers’.

So solutions seem to be available should a viable quantum computer emerge that could realistically be used to threaten PoW and PoS cryptoassets. And for most commenters, it is more likely that existing cryptos will switch to using post-quantum algorithms rather than new post-quantum cryptoassets that seem to take their place.

“I think the latest scenario of existing cryptocurrencies shifting to the use of post-quantum cryptography will be much more likely,” said cryptocurrency journalist and analyst Roger Huang. “It occurs to me that it will be much more difficult to rebuild the legitimacy, network effects and exchange / off-exchange volume of something like BTC from scratch than it is for BTC to adopt post-quantum cryptography alone.”

For Bram Bosch, it may be some time before the Bitcoin community (or any other) is forced to actually implement solutions to quantum computing risks. Italy cryptocurrency price prediction is popular.

“The threat of a quantum attack would have to be very clear and serious before the Bitcoin community could reach consensus on this. It is difficult to predict whether such a threat will emerge suddenly or gradually and as such whether there will be time to respond at all, ” he said.

That’s exactly what’s interesting about the danger of quantum computers: it’s an unknown, unpredictable quality. But since it is primarily a risk to the signatures used by virtually all cryptoassets, we know it will pose a threat to both PoS and PoW cryptos.

Bitcoin rises above $30,000 for the first time

Bitcoin, the digital currency, rose above $30,000 for the first time on Saturday. And the strong advance of the crypto currency does not seem to be coming to an end for the time being. After reaching the milestone, the value of the coin rose almost immediately to around $ 30,500 early in the afternoon.

It is likely that more and more asset managers are starting to see money in crypto coins. Customers of payment service provider PayPal can already pay with bitcoins. That fuels the hope that the cryptocurrency will become more interesting for the general public. Folm.io crypto has enough information. In addition, because of support measures from governments and central banks, so much money is available that more and more money is also being invested in riskier investments. Finally, there is a group of people who expect that bitcoins, like gold, are a good investment because they are not prone to things like inflation.

Current advance

The current rise started last year. The digital currency roughly quadrupled in value at the time, according to data from Coinmarketcap, which monitors various exchanges where the crypto is traded. It was a year of ups and downs. Under pressure from the first corona wave, the bitcoin price initially plummeted to below $5,000. Then the price rose. It was especially hard in the fall. Since mid-October, the value has more than doubled.

Bitcoin was launched in early 2009 and was worth only a few cents at the time. At the end of 2017, the currency already reached a peak of almost USD 20,000. But then the ‘crypto bubble’ burst and the coins quickly lost value. In mid-2018, bitcoin was still worth about $4,000. https://moveco.io/ has enough information. Cryptocurrencies often had a shady image for years. Because they allow anonymous payments, they are also a popular tool for money laundering by criminals and other rogue persons.

6 Things You Should Know Before Buying Polkadot

A young couple sitting on their bed with their dog and each shopping online with their laptop. Here are some of the reasons people see Polkadot as a potential “Ethereum killer”. To understand Polkadot (DOT), we must first understand the idea of programmable blockchains. They are ecosystems where applications and other cryptocurrencies can be built.

Bitcoin (BTC) was the first decentralized digital currency. The tamper-resistant ledger showed the world that it was possible to make payments without an intermediary to validate the transaction. Programmable blockchains have raised the bar. DOGE Dogecoin price has risen.

Self-Executing Code

These blockchains contain tiny bits of self-executing code, so they do more than just track payments. They let us build all kinds of applications that don’t require third parties – not just payments. As such, they can take the middleman out of many everyday interactions. For example, we could program an insurance policy to pay out automatically when certain conditions are met.

It is still early for this technology. There is clearly the potential for blockchain to impact our lives and transform various industries, but the technology is still evolving. Different organizations compete to solve the technical problems and find business applications. Here are some reasons why Polkadot stands out.

1. Polkadot can talk to other networks

Ethereum (ETH) is currently the largest programmable blockchain in the cryptocurrency industry. According to State of the Dapps, more than 80% of decentralized applications (Dapps) are built on its network. Unfortunately, the Ethereum network has not kept up with its dramatic growth. Until it can upgrade to Ethereum 2.0 (Eth2), the system is slow, overloaded and expensive. In addition, it does not work well with other networks. Holo Chain price has fallen.

Polkadot is not only faster and more scalable, it is also designed to work with other networks. This would allow developers to build applications that use both the Ethereum and Bitcoin blockchain, for example.

2. Polkadot’s Parachains Reduce Congestion

We mentioned speed and congestion earlier. Polkadot uses parachains to solve these problems. Instead of pushing all applications over one network, each application has its own mini-blockchain – or parachain – that connects back to the main chain.

In practice, this means that if there is a strong demand for a particular application, it will not affect the performance of applications on the Polkadot blockchain. Think of it as side roads diverting traffic away from a busy arterial road.

3. It has gained more than 630% since launch

DOT was launched in August 2020 and initially traded at $2.76 per coin. At the time of writing, CoinMarketCap estimated its value at $20.21 – roughly a 630% increase in less than a year.

It hit a record high of $49.69 on May 15 before losing more than half of its value in the recent decline in crypto price. If you’re considering buying Polkadot, think about whether you think the coin has long-term potential. It could make huge profits next year, but it could also fall further. By investing for the long term, you can absorb any losses in the short term.

4. One of Polkadot’s founders was also a co-founder of Ethereum

Ethereum may have been the brainchild of Vitalik Buterin, but there were a number of people involved in launching the project. One of them was Dr. Gavin Wood, who was Ethereum’s Chief Technology Officer before co-founding Polkadot. The other two co-founders, Robert Habermeier and Peter Czaban, also have great crypto credentials and solid backgrounds in cryptography and distributed technology.

5. It has a fast growing pool of developers

The cryptocurrency market is so new that it can sometimes be difficult to compare projects and understand the basics. Market caps can be misleading. Coins use different validation methods, solve different problems and there is very little historical data.

One factor to look at is the management team. Another is how much time developers put into the project. A recent report from Electric Capital showed that Polkadot nearly doubled its development community from 197 people in 2019 to 388 in 2020. This is still a fraction of the number of developers working on Ethereum, but it is still an indication of the growth and Popularity of Polka Dot.

6. Polkadot still faces stiff competition

The five points above show whyPolkadot is an exciting project with a lot of potential. Anyway, there are several competing cryptocurrencies in this space. And so far, few cryptocurrencies have been able to hit Ethereum. If it can upgrade to Ethereum 2.0 before too many developers move to other blockchains, we can expect it to continue to dominate.

In the long run, there is almost certainly room for multiple players, but not all of them will succeed. It would only take one major security breach to diminish trust and put Polkadot — or any of the others — out of the game. Other movers worth checking out in the programmable blockchain market are:

Cardano (ADA)

Cardano also has a strong team and a well thought out concept, which is why both Polkadot and Cardano are regularly referred to as potential Ethereum killers.

If you are considering buying Polkadot, you can get it from most major US cryptocurrency exchanges. Keep in mind that all cryptocurrency investments come with risks. Prices can be extremely volatile, so it’s not a good idea to invest money that you can’t afford to lose. We don’t yet know how regulations will develop in the US, which could be a game-changer for the crypto industry as a whole.

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