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Quantum computer ‘threat’ to crypto is exaggerated — For now

Bitcoin’s private keys won’t be breached any time soon. But the industry still needs to transition to a “post-quantum cryptography.” 

A report that Chinese researchers have employed a D-Wave quantum computer to breach encryption algorithms used to secure bank accounts, top-secret military data and crypto wallets is at first glance a matter for deep concern. 

“This is the first time that a real quantum computer has posed a real and substantial threat to multiple full-scale SPN [Substitution-Permutation Network] structured algorithms in use today,” wrote Shanghai University scientists in a peer-reviewed paper, according to the South China Morning Post (SCMP) on Oct. 11.

The paper talks about breaking RSA (Rivest-Shamir-Adleman) encryption, one of the oldest and widely used public-key cryptosystems.  

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AI-coded smart contracts may be flawed, could ‘fail miserably’ when attacked: CertiK

CertiK’s security chief thinks inexperienced programmers using AI tools such as ChatGPT to write smart contracts is a recipe for disaster.

Artificial intelligence tools such as OpenAI’s ChatGPT will create more problems, bugs and attack vectors if used to write smart contracts and build cryptocurrency projects, says an executive from blockchain security firm CertiK.

Kang Li, CertiK’s chief security officer, explained to Cointelegraph at Korean Blockchain Week on Sept. 5 that ChatGPT cannot pick up logical code bugs the same way that experienced developers can.

Li suggested ChatGPT may create more bugs than identify them, which could be catastrophic for first-time or amateur coders looking to build their own projects.

“ChatGPT will enable a bunch of people that have never had all this training to jump in, they can start right now and I start to worry about morphological design problems buried in there.”

“You write something and ChatGPT helps you build it but because of all these design flaws it may fail miserably when attackers start coming,” he added.

Instead, Li believes ChatGPT should be used as an engineer’s assistant because it’s better at explaining what a line of code actually means.

“I think ChatGPT is a great helpful tool for people doing code analysis and reverse engineering. It’s definitely a good assistant and it’ll improve our efficiency tremendously.”
The Korean Blockchain Week crowd gathering for a keynote. Source: Andrew Fenton/Cointelegraph

He stressed that it shouldn’t be relied on for writing code — especially by inexperienced programmers looking to build something monetizable.

Li said he will back his assertions for at least the next two to three years as he acknowledged the rapid developments in AI may vastly improve ChatGPT’s capabilities.

AI tech getting better at social engineering exploits

Meanwhile, Richard Ma, the co-founder and CEO of Web3 security firm Quantstamp, told Cointelegraph at KBW on Sept. 4 that AI tools are becoming more successful at social engineering attacks — many of which are identical to attempts by humans.

Ma said Quantstamp’s clients are reporting an alarming amount of ever more sophisticated social engineering attempts.

“[With] the recent ones, it looks like people have been using machine learning to write emails and messages. It's a lot more convincing than the social engineering attempts from a couple of years ago.”

While the ordinary internet user has been plagued with AI-generated spam emails for years, Ma believes we’re approaching a point where we won’t know if malicious messages are AI or human-generated.

Related: Twitter Hack: ‘Social Engineering Attack’ on Employee Admin Panels

“It's gonna get harder to distinguish between humans messaging you [or] pretty convincing AI messaging you and writing a personal message,” he said.

Crypto industry pundits are already being targeted, while others are being impersonated by AI bots. Ma believes it will only get worse.

“In crypto, there’s a lot of databases with all the contact information for the key people from each project. So the hackers have access to that [and] they have an AI that can basically try to message people in different ways.”

“It’s pretty hard to train your whole company to not respond to those things,” Ma added.

Ma said better anti-phishing software is coming to market that can help companies mitigate against potential attacks.

Magazine: AI Eye: Apple developing pocket AI, deep fake music deal, hypnotizing GPT-4

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Chinese Researchers Claim Success in Breaking RSA Encryption With Quantum Computer, Experts Debate Veracity of Discovery

Chinese Researchers Claim Success in Breaking RSA Encryption With Quantum Computer, Experts Debate Veracity of DiscoveryAccording to reports circulating on the web, 24 Chinese researchers have reportedly succeeded in breaking RSA encryption using a quantum computer. This would be a significant achievement, as RSA encryption is widely used in current security practices. However, a number of experts, computer scientists, and cryptographers do not believe the researchers have made a significant […]

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Quantum computers may soon breach blockchain cryptography: Report

Cryptography experts are somewhat skeptical of the technique's scalability, but aren't ruling out the possibility of success either.

According to a recent paper, Chinese researchers claimed to have discovered a novel method to break the Rivest–Shamir–Adleman 2048 bit (RSA-2048) signing algorithm present in blockchains and other security protocols. RSA is a cryptographic technique that utilizes a public key to encrypt information and a private key to decrypt them. 

Breaching the RSA-2048 algorithm requires, similar to other algorithms in the RSA numbers family, finding the prime factors of a number with 617 decimal digits and 2048 binary digits. Experts estimate that it would take ordinary computers 300 trillion years to break an RSA-2048 encryption key. However, Chinese researchers said in their paper that the encryption could be inversed with a quantum computer with 372 qubits, or a basic unit of information acting as a proxy for computation power.

In comparison, the latest IBM Osprey quantum computer has a processing capacity of 433 qubits. Previously, experts calculated that factoring RSA-2048 with quantum computers employing Shor's algorithm (a quantum factoring method) would require 13,436 qubits. 

Unlike classical computers that operate on a binary basis of 0 or 1, quantum computers utilize quantum bits that can take on infinite states at temperatures of -273°C (-459.4°F), achieved by using liquid gas coolants. Thus, the quantum computer is able to map out all possible solutions to a cryptographic problem and attempt them all at once, increasing efficiency on an astronomic scale.

Comparison of classical vs quantum computing | Source: Towards Data Science. 

As told by American cryptographer Bruce Schneier, Chinese researchers appear to have combined "classical lattice reduction factoring techniques with a quantum approximate optimization algorithm" that successfully factored 48-bit numbers using a 10-qubit quantum computer. "And while there are always potential problems when scaling something like this up by a factor of 50, there are no obvious barriers," Schneier commented. 

Security expert Roger Grimes also added:

"Apparently what happened is another guy who had previously announced he was able to break traditional asymmetric encryption using classical computers…but reviewers found a flaw in his algorithm and that guy had to retract his paper. But this Chinese team realized that the step that killed the whole thing could be solved by small quantum computers. So they tested and it worked."

Schneier also warned that the algorithm relies on a recent factoring paper authored by Peter Schnorr, where its algorithm works well with small bits but falls apart at larger sizes, with no tangible explanation. "So if it's true that the Chinese paper depends on this Schnorr technique that doesn't scale, the techniques in this Chinese paper won't scale, either," Schneier wrote. 

"In general, the smart bet is on the new techniques not working. But someday, that bet will be wrong."

Quantum computers are also limited by operational factors such as heat loss and the requirement of a complex -273°C (-459.4°F) cooling infrastructure. Thus, the number of nominal qubits required to inverse cryptographic algorithms is likely far higher than theoretical estimates.

Although researchers have not yet done so, the methodology could be theoretically replicable to other RSA-2048 protocols used in informational technology, such as HTTPS, email, web browsing, two-factor authentication, etc. Ethereum (ETH) co-founder Vitalik Buterin previously stated his long-term goals for include making the blockchain quantum resistant. Theoretically, this involves forking the network to utilize a higher-order encryption algorithm that would require greater qubits to break.

Cointelegraph editor Jeffrey Albus contributed to this story. 

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Will Quantum Computing Technology Be Small Enough To Fit Into Smartphones?

Engineers are eyeing a possible breakthrough in quantum computing.  If all goes according to plan, computers that draw power from the quantum realm to perform their calculations may soon be small enough to embed into mobile phones and other everyday electronic devices. Usually the size of entire server rooms, quantum computers process some information up […]

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Is Quantum Computing Placing Bitcoin’s Future in Jeopardy? Quantum Expert Andrew Fursman on Future of Crypto

Quantum computing expert Andrew Fursman is convinced quantum attacks in the future will pose a threat to the security of Bitcoin (BTC). In a video, Fursman highlights that the massive computational potential of quantum machines could be capable of compromising Bitcoin’s security. “It’s mathematically proven that if you have a device that looks like the […]

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