The Quantum Computing Arms Race Is Heating Up, and the Stakes Are High

Researchers told Business Insider that we could be looking at hacks not just on individual cryptocurrencies but on our entire financial system.

As Donald Trump prepares to take office, he seems to be embracing the "crypto president" persona. He's launching his own meme coin and considering a federal reserve for bitcoin. And with cryptocurrencies like bitcoin hitting six figures, many view them as a way to hedge against inflation or tackle the national debt.

But here's the catch: Quantum computing could threaten that security. Researchers told Business Insider that we could be looking at hacks not just on individual cryptocurrencies but on our entire financial system. Arthur Herman, a big name in the quantum field, said this tech could break our current encryption methods, which is a scary thought.

So, what is quantum computing? It's a blend of computer science, math, and quantum mechanics that can solve complex problems much faster than traditional computers. Instead of using regular bits (0s and 1s), it uses qubits, which can exist in multiple states simultaneously. This allows them to tackle equations with numerous solutions at incredible speeds.

But qubits are finicky. They're unstable and behave differently when you try to measure them, requiring special conditions to function properly, which makes scaling up the technology challenging. However, researchers believe that once mastered, quantum computers could aid in everything from drug discovery to breaking encryption.

Just last month, Google unveiled a new quantum chip called Willow, which is a game-changer. It can perform a task that would take the fastest supercomputers 10 septillion years to complete in less than five minutes! That's mind-boggling.

Other companies like IBM and Microsoft are also in the race, and even countries like France, Russia, and China are developing their own quantum technologies. Karl Holmqvist, a quantum security adviser, said that while we're not yet at the stage of fully functional quantum computers, the potential risks are becoming clearer.

He pointed out that our current encryption methods, particularly public key cryptography, could be vulnerable. This means that personal data, national security secrets, and even blockchain information could be accessed and manipulated by anyone with a quantum computer.

Herman added that a quantum hack could be stealthy, allowing bad actors to wreak havoc without being detected. Unlike traditional hackers who must breach one system at a time, a quantum hacker could crack multiple systems simultaneously.

He likened the race for reliable quantum computing to the nuclear arms race but felt that officials weren't treating it with enough urgency. He believes being the first to develop a quantum computer would be a powerful deterrent against threats from nations like Russia and China. It's an exciting and nerve-wracking time for technology, and we'll have to watch closely how this unfolds.