Day by day, we encounter new technologies, which affect our lives in positive and negative ways with their properties. Now, we would like to focus on a new technology called quantum computing, a rapid-emerging technology, and the impact of quantum computers on crypto and NFTs.
What are quantum computing and quantum computer?
We got used to traditional computers, but we should also get used to quantum computers now. As you can predict, some complicated problems cannot be solved by classical computers, but quantum computers can solve complex situations.
Quantum computing is a fast-growing technological sector, and it can provide us with the chance to handle the most complex challenges. To make the explanation concrete, we want to give examples to the users of quantum computers: NASA, ExxonMobil, Mercedes-Benz, CERN, Alphabet, and IBM. As you can predict from the users, quantum computers are utilized by the most popular companies, and the technology is chosen in the most prominent industries, like blockchain technology. Now, we would like to explain the impact of quantum computers on crypto and NFTs.
Impacts of quantum computers on crypto and NFTs
We encounter different cryptocurrencies, which are using blockchain technology to transfer money from one person to another person day by day. Supposably, Bitcoin is the most popular one, and the transactions on its public ledger can be available to everyone. A similar system with Bitcoin can be encountered in other cryptocurrencies. These cryptos do not rely on encryption. On the other hand, some cryptocurrencies do not resemble Bitcoin; they focus on privacy, so their transactions are not for the public. In other words, the type of cryptos is based on advanced encryption, and Monero and Dash are examples of the type of cryptos. At that point, quantum computers show themselves: Quantum computers can be used to crack the code of the cryptos that avoid the tracking of the transactions. We cannot give a concrete example of the circumstance, but the possibility of cracking via quantum computers is very high. Hence, quantum computers present a negative impact on privacy-based cryptocurrencies.
As you know, smart contracts are the future version of contracts, and they involve all transactions on blockchain platforms. Thanks to smart contracts, the requirement of an intermediary for fulfilling transactions disappears. These contracts are computer protocols written into a line of code, so quantum computers can become involved. These computers are very advanced, so they are able to crack the codes of smart contracts. Hence, the possible relation between smart contracts and quantum computing should be considered.
At the third point, we want to mention that quantum computers can affect cryptocurrency wallets. The wallets depend on encryption, and they include all digital assets of people, so they are very valuable. However, quantum computers can ruin the cryptography which is needed for the creation of cryptocurrency wallets. In addition to the wallets, quantum computers might affect cryptocurrencies relying on hashing technology negatively.
As you can predict, NFTs can be affected in a bad way if cryptocurrencies and blockchain technology is affected negatively because there is a significant relationship between blockchain technology, cryptocurrencies, and the NFT world. Although there is no valid information about the impact of quantum computing on NFTs, the technology has a negative impact on blockchain technology and cryptos, so it can have also negativities on the NFT world.
Quantum computers can have the ability to present negative impacts on blockchain technology, cryptocurrencies, and NFTs, but these computers are not at that stage now. The computers manipulate data stored in qubits that are subject to physics governing the ultrasmall, so they will require thousands of qubits when they will crack some codes. Hence, to show the impacts in the sector, quantum computers should be developed more.
Like the possible development of quantum computers, crypto developers are working for avoiding the impact of quantum computing; they try to create cryptographic systems that cannot be affected by advanced computers. Hyperledger Foundation is one of the projects which are about the solutions to the negative impacts of quantum computers.
Quantum computers can improve some areas and contribute to people in different business areas. However, these computers can damage the cryptocurrency industry. Hence, we can say that quantum computers have both advantages and disadvantages that must be known by people in the crypto and NFT sectors.