Blockchain technology and quantum computations are two rapidly growing technologies that everyone is talking about but is it true that quantum computers will be considered as one of the threats to the blockchain.
Let’s first understand the property of blockchain and its security to get a better idea on how QC(Quantum Computing) is a threat to the blockchain.
Blockchain Property and its security
A blockchain is a decentralized, transparent, and timestamp ledger of cryptographically linked data stored in blocks with different hash values connected in p2p mode. The blockchain acts as a distributed database of records, sharing data among a network of computers. Unlike traditional databases, which store data on a server, the blockchain lacks a central point of attack. It is most famous for being the technology underlying cryptocurrencies like Bitcoin. Its applications are not just found in the banking industry. Transactions, which are recorded on the blockchain as data, can be any kind of asset, from real estate or cash to immaterial items like property rights or patents.
Satoshi Nakamoto is considered a pioneer in creating blockchain and digital assets. Earlier blockchain was introduced in finance and distributed ledger technology after that people started using it in peer-to-peer transactions as it is fully decentralized by eliminating centralization. As blockchain possesses properties like integrity, availability, and transparency users have the ability to create, check, and validate the transaction recorded in a distributed ledger. The best thing about the security of blockchain is no one can delete or alter information once it is recorded in a block.
Each block contains 4 fundamental elements, i.e.
1) Hash of the previous block
2) Data of block
3) Nonce value
4) Hash of block
So, by these characteristics, blockchain is considered the most powerful and secure publicly distributed node. Blockchain uses digital signature and hash functions to verify its data. In modern cryptography, there are 3 major techniques that are used for secure communication. Symmetric, asymmetric, and hash functions. Blockchain technology uses an asymmetric key for signing the transaction and later broadcasting the public key to all the sender and this key is used to verify the digital transaction in order to verify its legitimacy. The blockchain system is protected by cryptography protocols such as hash functions, digital signatures, and algorithms like SHA 256. Blockchain technology has gained attention due to the way it stores data and its properties such as immutability, decentralization, and transparency are popular among the traditional databases that are available in the market which leads to the compromise of the system due to the central authority. Now let’s deep dive into our main topic which is Quantum computing, which is considered a threat to the blockchain and cryptography but it will not be the end of blockchain.
What is quantum Computing?
Quantum computing is a novel technology known for its speed of calculations. Unlike classical calculations, quantum computing technology provides various approaches to handle difficult computation-related issues and makes problem-solving more efficient and effective. Quantum computing describes the use of quantum properties to perform computation. The machines used for these computations are known as quantum computers.
This enables quantum computers to process enormous volumes of data simultaneously, enabling them to solve some problems far more quickly than classical computers. Quantum computing, although still in its infancy, has the promise of tackling problems that are beyond the reach of present classical computers by providing exponential increases in processing power.
The use of quantum properties for computation is known as quantum computing. Quantum computers are the devices used to perform these calculations. Quantum computers do the opposite in that they are reducing the security of current cryptographic systems and the heart of the pillar of blockchain technology is cryptographic algorithms. So it could be a major threat to blockchain in the near future.
How do quantum computers work?
Quantum computers work on different principles with respect to the ideal computer. Ideal computers operate on binary bits that are 0 or 1 while quantum computers use qubits, which are in the form of multiple states at the same time and that is why they are considered faster or supercomputers than normal computers. There are two algorithms called Grover’s and Shores which can be the reason for breaking into the blockchain security.
Types of threats to blockchain through quantum computing
1. Brute force: A brute force is a technique to guess the password by entering the various combinations but it’s not always possible because normal computers’ computing power is not faster. But with the help of quantum computers that can target various components, such as private keys, wallet addresses, or even consensus algorithms it performs certain calculations much faster.
2. Double spending:
In the concept of blockchain, double spending means spending or transacting the same transaction twice because of non-confirmation of the transaction. So, quantum computing gives the ability to manipulate the value of nonce and an attacker can easily confirm any illegal transaction quicker than actual miners who mine the blockchain.
3. Random number generation:
Generally, blockchain security depends on the randomness of cryptography, while quantum computing allows one to predict that random number generated by cryptography algorithms and breaks security.
4. Sybil:
Sybil attacks involve creating multiple fake identities to gain control over a network. In blockchain technology, digital identities are used to verify transactions. Verifiable Anonymous Identities have been proposed to prevent fake identities, relying on zero-knowledge proofs and public-key cryptography
5. 51 % Attack :
51 % is a type of attack in a blockchain network where a single entity or organization controls 50% or more of the hashing rate computation power, leading to a compromised network.
6. Spam:
Spam attacks involve overwhelming the network with a large number of illegitimate transactions, causing congestion and slowing down transaction processing. With quantum computing, attackers can leverage their computational power to generate a significantly larger volume of spam transactions compared to traditional computing methods.
7. Consensus delay:
Quantum computers can potentially reduce consensus time in blockchains and delay depends on the consensus algorithm and quantum computational power.
8. Theft of wallet:
Wallet security is related to digital signatures, this is where quantum computers pose a more realistic threat.
9. Smart contract : Re-entrancy attack in smart contract leads to the lost of assets and it can also vanish the entire wallet to 0.
10. Pool mining:
Hash rate advantage could allow the quantum-powered pool to mine blocks faster and earn a higher proportion of the block rewards which is against the decentralization in blockchain. Quantum computers may pose a threat by breaking the cryptographic mechanisms used to secure the communication channels and authentication protocols between the pool participants.
Now let’s go back to the highlighted text. Quantum computing is considered a threat to the blockchain and cryptography but it will not be the end of blockchain.
Post-quantum cryptography aims to develop quantum-resistant algorithms for encryption and digital signatures. The use of ECDSA in blockchain involves the calculation of a public key from a private key using a one-way function. This function makes it computationally easy to derive the public key, but reversing the process to obtain the private key is extremely difficult due to the mathematical complexity of solving discrete logarithm problems. However, the security of ECDSA can be compromised by quantum computers using Shor’s algorithm, which can break the underlying cryptographic assumptions. As a result, there is a demand for quantum-resistant signature algorithms.
Post-Quantum secure blockchain NCOG earth chain
NCOG EARTH chain is pioneering a blockchain project under the umbrella of NGD Cooperation which is committed to delivering sustainable and secure blockchain solutions. NCOG EARTH chain uses a combination of various algorithms such as Proof of Stake (Pos), Directed Acyclic Graph (DAG), and the forest protocol to enhance security and scalability of blockchain.
In addition to this it also uses Post-Quantum Cryptography techniques which is used for creating a digital signature and generating of hash value. It uses consensus like Quantum Byzantine Fault Tolerance (QBFT) to ensure its integrity of blockchain.
NCOG EARTH chain security frameworks also include additional security features like
Advance Encryption techniques, Audits of smart contract, Decentralized Infrastructure
Secure key management
Conclusion:
So now we finally got the answer to highlight words that are not the end of blockchain but the beginning of NEC blockchain.