Chinese researchers crack military-grade encryption: is bitcoin safe?

Recent news that Chinese scientists have used quantum computers to crack military-grade encryption has reignited the long-standing debate over whether bitcoin (BTC) could withstand an attack from such powerful machines.

First reported by the South China Morning Post, the news claims that Chinese scientists used a D-Wave quantum computer to successfully attack popular cryptographic algorithms such as Advanced Encryption Standard (AES) and Rivest-Shamir-Adleman (RSA).

However, the researchers admit that while quantum technologies have made advancements, they still face limitations that would prevent a full-scale quantum attack on banking systems or other critical infrastructure.

"The experiments indicate that, in the context of slow progress in universal quantum computing devices, D-Wave quantum annealing has shown better realistic attack capabilities," the researchers stated.

Meanwhile, Jameson Lopp, a bitcoin security expert and CTO at BTC custody solution provider Casa, reminded the community that the bitcoin industry should not dismiss quantum computing as something that will never materialize or threaten bitcoin. He called the Chinese experiment "another small step forward in quantum computing."

Lopp also referenced quantum computing researcher Scott Aaronson, who recently emphasized in a talk that "maybe, eventually, someone will need to start thinking about necessary steps to withstand quantum attacks. They should shift to worrying about this now and formulating a plan.”

However, another prominent bitcoiner, Giacomo Zucco, said he remains unconcerned, suggesting that a quantum computer capable of posing a real threat to bitcoin is unlikely to emerge in our lifetimes.

"It's the same level of distance from practical application as net-positive nuclear fusion – just slightly less than warp-drive starships and 'artificial general intelligence singularity' (both of which would also have major consequences for bitcoin)," Zucco remarked.

In any case, developers are already working on potential solutions in case quantum computing advances more quickly.

The authors of one of the Bitcoin Improvement Proposals (BIPs) cited a Deloitte report indicating that in 2020, approximately 25% of the bitcoin supply was held in addresses vulnerable to quantum attacks.

"As of the time of writing, that number is now closer to 20%," the developers noted, proposing a post-quantum cryptographic signature algorithm.