Published May 1, 2023
CHEYENNE, WY / ACCESSWIRE / May 1, 2023 / Although cryptocurrencies have experienced a significant decline from their market cap of over $2 trillion in 2021, they are gaining momentum once again, with Bitcoin up over 75% YTD as of this writing. The crypto industry is rapidly integrating its way into mainstream monetary systems, offering unique solutions to numerous sectors, including finance and gaming.
Born from the ashes of the 2008 financial crisis, the cryptocurrency industry, led by Bitcoin, emerged in response to what was perceived by many as a corrupt, inefficient and centralized financial landscape. It sought to establish decentralized financial alternatives to overcome these challenges, striving to achieve an intricate equilibrium between security, scalability and decentralization.
However, despite the robust nature of the blockchain, the security of cryptocurrencies is threatened by the advent of quantum computers, as they will compromise existing cryptographic algorithms without a viable replacement.
The Quantum Resistant Ledger, or the QRL blockchain, offers an innovative and future-proof solution that addresses the significant quantum risk of existing blockchain technology with its own quantum-safe blockchain technology and digital asset. The following discussion will explore the quantum risk landscape for cryptocurrency and evaluate QRL’s potential to seize this market opportunity as a post-quantum secure hedge for investors.
The Quantum Risk Landscape
To understand the quantum risk landscape, it’s first important to take a step back and understand how cryptocurrencies operate. The primary objective of crypto is to facilitate value exchange without intermediaries, achieved via cryptographic algorithms that enable consensus, process transactions, and ensure data integrity in a permissionless, automated way.
Cryptocurrency security currently relies on mathematical processes, called hashing algorithms, and digital keys, specifically public-key cryptography. Together, these systems discourage tampering by making it extremely expensive and challenging for malicious users to exploit the system.
This implies that, unlike traditional banks, cryptographic algorithms and blockchain technology confirm ownership through probabilistic trustlessness rather than absolute certainty. While today’s major blockchains like Bitcoin and Ethereum are considered extremely secure, quantum computing promises new capabilities in processing power, which is likely to have grave impacts on the security of these cryptocurrencies.
The Quantum Threat to Bitcoin and Ethereum
According to a recent report by Deloitte, about 65% of all Ether are vulnerable to a quantum attack, and this number has been continuously increasing. This is a significantly larger percentage than the 25% Deloitte found for the Bitcoin blockchain in a previous analysis.
QRL’s Quantum-Safe Blockchain Technology
The Quantum Resistant Ledger (QRL) stands as the pioneering post-quantum value store and secure communication layer, designed to shield against the looming quantum computer threat.
QRL employs a cryptographic method called the eXtended Merkle Signature Scheme (XMSS), to ensure that the blockchain remains secure even in the face of powerful quantum computers, providing a long-term solution for safeguarding digital assets.
In addition to protecting transactions, QRL’s unique blockchain technology also secures communications. QRL brings together two advanced techniques, on-chain lattice key storage and layer-to-internode communication, to create a highly secured messaging system that is protected from the threats of super-powerful quantum computers.
Lastly, QRL is extremely adaptable and tightly integrated with several world-leading hardware digital asset storage solutions and open development architecture. This, coupled with a rich API and user interface, makes QRL a seamless and robust enterprise solution.
Embracing The Quantum Future With QRL
As a prudent investor, evaluating long-term risks associated with blue-chip assets like Bitcoin and Ethereum is essential. While they may be safe at the moment, current trends in post-quantum computing pose grave risks to the security of these platforms.
QRL could be poised to be a market leader in the quantum-safe space, potentially offering a low-risk and lucrative opportunity for investors to gain exposure to a growing niche. With the increasing divergence between the physical and digital worlds, it is more crucial than ever to assess and safeguard against the escalating risks in the digital era.
Featured photo by FLY:D on Unsplash
SOURCE: The Quantum Resistance Corporation
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