The new chip is based on topological qubits derived from Majorana zero modes encoding quantum information. This innovative design encodes the nonlocal states data, requiring end-to-end interference in a specific nanowire, thereby minimizing the susceptibility of errors.
According to Forbes, this configuration is targeted toward parity shifting, a fundamental and significant advancement toward developing scalable quantum systems from this point onward. However, the experts add a caveat that the current form of quantum technology does not nearly meet the threshold of being able to reverse-engineer the elliptical curve cryptography used for bitcoins.
A quantum computer with several million qubits, several orders of magnitude higher than the capability of today's prototypes, would be required to crack the signature scheme utilized in Bitcoin, which at present places the threat largely in the theoretical domain.
BIP-360 Quantum Resistance
The way Bitcoin achieves security with ECDSA (Elliptic Curve Digital Signature Algorithm), however, is by tying public and private keys together in a way that can't be reversed by traditional computers. Breach that security, and wallets are exposed in their addresses where public keys are visible using Shor's algorithm on sufficiently advanced quantum computers. Researchers recognize such concerns, but the number of qubits needed for the decryption is still well over current abilities.
Replacing insecure signature schemes through hash-based and hybrid methods-that is to say, combinations of classical and post-quantum algorithms-would be tied to new framework to quantum resistance as recommended in BIP-360.
This proposal involves creating a new transaction output type, concealing public keys using strong hash functions whereby funds in such addresses can be protected against their exposure. Algorithms such as FALCON-1024 will be deployed and combined with a gradual transition of backward-compatible hybrid signatures to maintain network functionality against vulnerabilities of both Pay-to-Public-Key and reused address schemes.
This transition would include moving unprotected funds into quantum-resistant addresses, a process that industry experts estimate will take years unless very great network priority is given to it. Wallet providers and exchanges face the dual challenges of raising awareness about the need for users to migrate while at the same time updating infrastructure to the new standards.
Logistically and technically, the prospect of overhauling Bitcoin's cryptographic backbones catapults getting a hold of accelerated speed in quantum advancements. Thus, prudence in pacing is of great necessity in these matters.
Microsoft's Majorana 1 has joined the family of digitally pulsed voltage gates and a rather compact eight-qubit prototype in what is a research path toward real advancements in quantum hardware showcasing error suppression techniques that may finally scale up into industrial applications.
However, such technical challenges as coherence of qubits, integration of control electronics, and material defects are indicative that moving from prototype status to a quantum system able to compromise Bitcoin remains quite a leap. The slow pace of quantum development, therefore, reinforces the need for early measures such as BIP-360 as prudential steps and not reactions to an immediate threat.
The advancements in quantum hardware are paving the path together with BIP-360 toward dealing with such quantum vulnerabilities without sacrificing safety concerning the inherent security of Bitcoin.
