Originally published on: October 14, 2024
In a groundbreaking development, Chinese researchers from Shanghai University have successfully breached encryption algorithms used in banking and cryptocurrency systems using a quantum computer. Led by Wang Chao, the team utilized a quantum computer from Canada’s D-Wave Systems to achieve this feat through quantum annealing, a method that seeks the lowest energy state.
The targeted algorithms, including Present, Gift-64, and Rectangle, form the basis for the Substitution-Permutation Network (SPN) structure underlying the widely employed Advanced Encryption Standards (AES) in securing cryptocurrency wallets. While AES-256 is regarded as highly secure, the potential threat posed by quantum computers could compromise established password-protection mechanisms.
Wang detailed their use of quantum annealing as akin to an AI algorithm capable of globally optimizing solutions. Unlike traditional computing methods, quantum tunneling allows particles to navigate barriers efficiently, enabling quantum computers to find the most optimal solution by circumventing obstacles.
This significant breakthrough marks the first time a real quantum computer has challenged full-scale SPN algorithms, raising concerns about the vulnerability of existing cryptographic systems. While limitations currently impede a full-scale quantum hack due to environmental factors and hardware constraints, ongoing developments could pave the way for more potent quantum attacks in the future.
The findings, documented in a peer-reviewed paper published in the China Computer Federation (CCF) Chinese Journal of Computers, have underscored the urgent need for enhanced cybersecurity measures in the face of advancing quantum technology. Researchers like Ethereum co-founder Vitalik Buterin have proposed strategies to mitigate quantum computing risks, emphasizing the importance of proactive solutions to safeguard digital assets from potential threats.
As the crypto industry grapples with the implications of quantum computing, the race to bolster encryption standards and cybersecurity protocols intensifies. Stay informed about the latest developments and safeguard your investments with dynamic insights from our Markets Outlook newsletter. Don’t miss out on crucial updates to navigate the ever-evolving landscape of digital assets. Subscribe now to elevate your trading strategies and make informed decisions in a rapidly changing market.
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