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Theres been a lot of focus recently on encryption within the context of cryptocurrencies. Taproot being implemented in bitcoin has led to more cryptographic primitives that make the bitcoin network more secure and private. Its major upgrade from a privacy standpoint is to make it impossible to distinguish between multi-signature and single-signature transactions. This will, for example, make it impossible to tell which transactions involve the opening of Lightning Network channels versus regular base layer transactions. The shift from ECDSA signatures to Schnorr signatures involves changes and upgrades in cryptography.

Yet these cryptographic primitives might need to shift or transition in the face of new computers such as quantum computers. If you go all the way back down to how these technologies work, they are built from unsolved mathematical problems something humans havent found a way to reduce down to our brains capacity for creativity yet limited memory retrieval, or a computers way of programmed memory retrieval. Solving those problems can create dramatic breaks in current technologies.

I sat down with Dr. Jol Alwen, the chief cryptographer of Wickr, the encrypted chat app, to talk about post-quantum encryption and how evolving encryption standards will affect cryptocurrencies. Heres a summary of the insights:

Despite all of the marketing hype around quantum computing and quantum supremacy, the world isnt quite at the stage where the largest (publicly disclosed) quantum computer can meaningfully break current encryption standards. That may happen in the future, but commercially available quantum computers now cannot meaningfully dent the encryption standards cryptocurrencies are built on.

Quantum computer and encryption experts are not communicating with one another as much as they should. This means that discrete advances in quantum computing may happen with a slight lag in how encryption would operate. Its been the case that nation-states, such as China, have been going dark on research related to quantum this has the effect of clouding whether or not serious attempts can be made on the encryption standards of today, and disguising the sudden or eventual erosion of encryption a sudden break that might mean devastation for cryptocurrencies and other industries that rely on cryptography.

Its been known that many encryption schemes that defeat classical computers may not be able to defeat a sufficiently powerful quantum computer. Grovers algorithm is an example. This is a known problem and with the continued development of quantum computers, will likely be a significant problem in a matter of time.

Encryption standards being diluted now is not only a risk for the future, but also an attack on the conversations and transactions people will have to remain private in the past as well. Past forms of encryption that people relied upon would be lost the privacy they assumed in the past would be lost as well.

Cryptographic primitives are baked into cryptocurrencies regardless of their consensus algorithm. A sudden shift in encryption standards will damage the ability for proof-of-work miners or those looking to demonstrate the cryptographic proof that theyve won the right to broadcast transactions in the case of proof-of-stake designs such as the one proposed by Ethereum. Digital signatures are the common point of vulnerability here, as well as the elliptic curve cryptography used to protect private keys.

Everything here breaks if the digital signatures are no longer valid anybody with access to public keys could then spend amounts on other peoples behalf. Wallet ownership would be up for grabs. says Dr. Alwen. Proof-of-work or proof-of-stake as a consensus algorithm would be threatened as well in all cases, the proof would no longer be valid and have it be authenticated with digital signatures anybody could take anybody elses blocks.

While proof-of-work blocks would have some protection due to the increasingly specialized hardware (ASICs) being manufactured specifically for block mining, both systems would have vulnerabilities if their underlying encryption scheme were weakened. Hashing might be less threatened but quantum compute threatens key ownership and the authenticity of the system itself.

Post-quantum encryption is certainly possible, and a shift towards it can and should be proactive. Theres real stuff we can do. Dr. Alwen says here. Bitcoin and other cryptocurrencies may take some time to move on this issue, so any preparatory work should be regarded as important, from looking at benefits and costs you can get a lot of mileage out of careful analysis.

Its helped here by the fact that there is a good bottleneck in a sense: there are only really two or three types of cryptographic techniques that need replacement. Digital signatures and key agreement are the two areas that need the focus. Patching these two areas will help the vast majority of vulnerabilities that might come from quantum computation.

Its important to note that a sudden and critical break in encryption would affect other industries as well and each might have different reasons why an attack would be more productive or they might be more slow to react. Yet if there were a revolution tomorrow, this would pose a clear and direct threat to the decentralization and security promises inherent in cryptocurrencies. Because of how important encryption and signatures are to cryptocurrencies, its probable that cryptocurrency communities will have many more debates before or after a sudden break, but time would be of the essence in this scenario. Yet, since encryption is such a critical part of cryptocurrencies, there is hope that the community will be more agile than traditional industries on this point.

If a gap of a few years is identified before this break happens, a soft fork or hard fork that the community rallies around can mitigate this threat along with new clients. But it requires proactive changes and in-built resistance, as well as keeping a close eye on post-quantum encryption.

It is likely that instead of thinking of how to upgrade the number of keys used or a gradual change, that post-quantum encryption will require dabbling into categories of problems that havent been used in classical encryption. Dr. Alwen has written about lattice-based cryptography as a potential solution. NIST, the National Institute of Standards and Technology currently responsible for encryption standards has also announced a process to test and standardize post-quantum public-key encryption.

Hardware wallets are in principle the way to go now for security in a classical environment Dr. Alwen points out, having done research in the space. The fact that theyre hard to upgrade is a problem, but its much better than complex devices like laptops and cell phones in terms of the security and focus accorded to the private key.

In order to keep up with cryptography and its challenges, MIT and Stanford open courses are a good place to start to get the basic terminology. There is for example, an MIT Cryptography and Cryptanalysis course on MIT OpenCourseWare and similar free Stanford Online courses.

There are two areas of focus: applied cryptography or theory of cryptography. Applied cryptography is a field that is more adjacent to software engineering, rather than math-heavy cryptography theory. An important area is to realize what role suits you best when it comes to learning: making headway on breaking cryptography theory or understanding from an engineering perspective how to implement solid cryptography.

When youre a bit more advanced and focused on cryptography theory, Eprint is a server that allows for an open forum for cryptographers to do pre-prints. Many of the most important developments in the field have been posted there.

Forums around common cryptography tools help with applied cryptography as well as some of the cryptography theory out there: the Signal forums, or the Wickr blog are examples.

Cryptocurrencies are co-evolving with other technologies. As computers develop into different forms, there are grand opportunities, from space-based cryptocurrency exchange to distributed devices that make running nodes accessible to everybody.

Yet, in this era, there will also be new technologies that force cryptocurrencies to adapt to changing realities. Quantum computing and the possibility that it might eventually break the cryptographic primitives cryptocurrencies are built on is one such technology. Yet, its in the new governance principles cryptocurrencies embody that might help them adapt.

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Heres How Quantum Computers Will Really Affect Cryptocurrencies - Forbes

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Multinational conglomerate Honeywell said it will combine with Cambridge Quantum Computing in a bid to form the largest standalone quantum computing company in the world.

According to Honeywell, the merger will be completed in the third quarter of 2021 and will set the pace for what is projected to become a $1 trillion quantum computing industry over the next three decades.

In the yet to be named company, Honeywell will invest between $270 million and $300 million, and will own a major stake. It will also engage in an agreement for manufacturing critical ion traps needed to power quantum hardware.

The new company will be led by Ilyas Khan, the CEO and founder of CQC, a company that focuses on building software for quantum computing. Honeywell Chairman and Chief Executive Officer Darius Adamczyk will serve as chairman of the new company while Tony Uttley, currently the president of HQS, will serve as the new company's president.

"Joining together into an exciting newly combined enterprise, HQS and CQC will become a global powerhouse that will develop and commercialize quantum solutions that address some of humanity's greatest challenges, while driving the development of what will become a $1 trillion industry," Khan said in a statement.

With this new company, both firms plan to use Honeywells hardware expertise and Cambridges software platforms to build the worlds highest-performing computer.

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Honeywell joins hands with Cambridge Quantum Computing to form a new company - The Hindu

Trinity College Dublin has joined forces with Microsoft Ireland to accelerate the development of next-generation quantum technologies and support future leaders in the field.

Under the agreement, Microsoft will provide funding to support quantum research PhD students in Trinity College, while also establishing a female scholarship programme for the colleges MSc in Quantum Science and Technology.

The collaboration will support quantum research teams in Trinitys School of Physics and foster links with research teams in the private sector.

Having emerged from fundamental science over the last two decades, quantum research is now blossoming and promises to revolutionise technology in the coming years with discoveries and innovations that promise to power a more sustainable, advanced future, said Prof John Goold, who is directing the new MSc in Quantum Science and Technology course.

Microsoft recently announced a full-stack, open-cloud quantum computing ecosystem, named Azure Quantum. Quantum computers can solve in a matter of seconds problems that would take the fastest computers today thousands of years to solve, presenting the opportunity to address climate change, significant pharmaceutical advancements, and so on.

Quantum computing presents unprecedented possibilities to solve societys most complex challenges and help to secure a sustainable future. At Microsoft, were committed to responsibly turning these possibilities into reality for the betterment of humanity and the planet, Cathriona Hallahan, Managing Director, Microsoft Ireland said.

The introduction of the female scholarship programme is a welcome one and I believe more focused mechanisms such as this will help us to attract more females not only into the area of next-generation quantum technologies but also wider STEM related industries.

Prof Goold also praised support for the female-only scholarship programme.

As diversity has grown in my research team at Trinity, we have been more creative in pursuing and delivering high-quality science. Female uptake in certain STEM subjects remains low but initiatives like this are helping to drive positive change he said.

The Minister for Further and Higher Education, Research, Innovation and Science Simon Harris welcomed the collaboration. I am delighted to see this strong collaboration between Trinity College Dublin and Microsoft. Quantum computing technology will be instrumental in solving some of societys biggest challenges and seeing Ireland at the forefront of this research is tremendously important, he said.

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Trinity College teams up with Microsoft on quantum computing programme - The Irish Times