Bitcoin mining and security face risks from quantum computing

The rapid development of quantum computing technology presents potential threats to Bitcoin's (CRYPTO:BTC) ecosystem, targeting both mining operations and private key security, according to an analysis by CryptoQuant.

Bitcoin mining relies on the SHA-256 hash function and proof-of-work mechanism, which requires miners to solve complex problems using significant computational resources.

Quantum computers, equipped with algorithms like Grover’s, could enhance the efficiency of brute-force methods, allowing faster hash validation and potentially disrupting the network’s security.

CryptoQuant stressed that maintaining a strong, non-quantum-powered hash rate is critical to defending the blockchain from such advancements.

Private key integrity also faces challenges from quantum computing.

Shor’s Algorithm, for instance, has the potential to extract private keys from public keys, posing a threat to “pay to public key” (P2PK) addresses that directly reveal public keys.

While “pay to public key hash” (P2PKH) addresses provide additional security, they still expose public keys during transactions, leaving users vulnerable.

Notably, the use of P2PKH addresses has risen by 14%, though it is unclear if this increase is related to quantum computing concerns.

“Quantum computing is a growing risk for Bitcoin,” stated CryptoQuant, emphasising the significance of this emerging technology.

The platform explained that quantum computers use qubits in a superposition state to solve complex problems much faster than traditional computers, though the technology is still under development.

The Bitcoin community remains divided on the urgency of addressing quantum risks.

While some call for immediate action, others, including Blockstream CEO Adam Back, argue that Bitcoin’s encryption will remain secure until at least 2035.

Quantum advancements like Google’s Willow chip, unveiled in December, have reignited concerns.

However, experts note that brute-force attacks on Bitcoin would still require extraordinary resources, suggesting that practical risks remain distant.

At the time of reporting, the Bitcoin (BTC) price was $95,091.13.