The post Are there quantum-resistant crypto tokens, and why do they matter in present markets? appeared on BitcoinEthereumNews.com.

Recent developments in quantum computing have raised the stakes for developing quantum-resistant crypto tokens. Cryptocurrencies like Bitcoin and Ether, the frontrunners of digital currencies, rely on elliptic curve cryptography (ECC) to protect transactions and data. While ECC is currently secure against classical computers, it is reportedly vulnerable to the computational power of quantum machines, and that poses a huge risk for the broader crypto market. Blockchain developers have taken years to study the dangers of quantum computing to cryptocurrencies. ECC relies on complex mathematical problems, like finding the private key from a public key. Hackers have long considered it nearly impossible for classical computers to solve in a reasonable time frame.  However, the emergence of quantum computing could change this narrative. Cybersecurity experts believe the solution to ECC’s vulnerability is the development of quantum-resistant crypto tokens.  Post-quantum cryptography: The new defense Quantum computers, leveraging algorithms such as Shor’s Algorithm, can solve cryptographic problems exponentially faster than classical systems. In theory, a sufficiently powerful quantum computer could crack ECC encryption in a fraction of the time it takes classical computers, posing a significant security risk.  Although analysts believe this threat is still years away from fruition, its potential is a growing concern within the cryptocurrency community. To address this growing threat, developers are bringing in a new generation of cryptocurrencies that incorporate post-quantum cryptographic algorithms. These quantum-resistant tokens include lattice-based cryptography, hash-based signatures, code-based cryptography, and multivariate polynomial encryption.  Such cryptographic techniques are designed to be secure against both classical and quantum attacks, preventing any breach instances on blockchain networks and digital transactions. For example, the Quantum Resistant Ledger (QRL) employs the eXtended Merkle Signature Scheme (XMSS), a hash-based signature that remains secure even in a quantum computing environment. Similarly, IOTA uses the Winternitz One-Time Signature Scheme (WOTS), a post-quantum method…

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Filed under: News - @ January 8, 2025 1:33 pm