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Microsoft has presented a ground-breaking quantum computing technology that has the potential to transform the future of Bitcoin and cryptography. The tech behemoth unveiled the Majorana 1 chip, a game-changing step towards creating a utility-scale quantum computer. While this innovation has great potential, it raises questions about Bitcoin’s long-term security. Experts are currently debating the potential risks and whether the crypto sector is ready for a quantum-driven future. A New State Of Matter In Quantum Computing Microsoft’s research team claims to have discovered a novel state of matter known as a “topological superconductor”. This unusual phenomenon, which is crucial to the Majorana 1 semiconductor, allows for more stable and error-free qubits. Qubits, the fundamental units of quantum computing, have previously suffered from error rates that hampered large-scale applications. Microsoft aims to reduce error rates by a factor of 1,000 by effectively proving their topological qubit, compared to past quantum approaches. The company believes this will bring utility-scale quantum computing closer, potentially within the next decade. New frontiers in artificial intelligence, material science, and—above all— cryptography could be opened by this technology. Microsoft’s new state of matter is a quantum threat to bitcoin https://t.co/ozDkACBnHi — Protos (@Protos) February 20, 2025 The Threat To Bitcoin Encryption Bitcoin mines rely on SHA-256 and employs the Elliptic Curve Digital Signature Algorithm (ECDSA) to secure transactions. These systems are meant to be almost impervious to access with conventional computers. Quantum computers could, however, reverse that. If Microsoft’s quantum leap continues, experts fear that algorithms such as Shor’s and Grover’s will someday crack Bitcoin’s encryption. Shor’s method, in particular, may solve the mathematical challenges that underpin ECDSA, thus exposing Bitcoin wallets to theft. While today’s quantum devices are still a long way from this potential, fast improvements suggest that the risk could become a reality within…

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Filed under: News - @ February 21, 2025 8:25 pm