Bitcoin Faces Quantum Computing Threat, P2PKH Address Adoption Jumps 14% as Shield

Quantum computing advances may soon pose a real risk to Bitcoin's security and mining process. A CryptoQuant report explored how advanced quantum algorithms

Quantum computing is rapidly advancing, posing a potential threat to Bitcoin's security and mining process, according to a recent analysis by CryptoQuant.

Bitcoin mining involves solving computationally intensive cryptographic puzzles to secure the network and earn rewards. These puzzles rely on the SHA-256 hash function, which quantum computers could significantly accelerate using algorithms like Grover's.

This brute-force calculation capability would allow miners equipped with quantum computers to find valid hashes much faster than those using traditional systems. However, it could also compromise Bitcoin's proof-of-work security model, making the network vulnerable to attackers.

"A higher amount of non-quantum computing hash rate helps keep the network healthier and more resistant to this potential threat," the CryptoQuant experts explained.

Quantum computers could break many cryptographic algorithms much faster than classical computers, including RSA and ECC, which are widely used in Bitcoin and other cryptocurrencies. More concerningly, Shor's algorithm could enable attackers to derive private keys from public keys.

Early Bitcoin addresses, such as "Pay to Public Key" (P2PK), are particularly vulnerable as their public keys are exposed. "Pay to Public Key Hash" (P2PKH) addresses provide an additional layer of security, but once a transaction occurs, the public key becomes exposed, making these addresses also susceptible. Reusing addresses further increases the risk.

Fortunately, there has been a 14% increase in the adoption of P2PKH addresses, indicating efforts to protect against theoretical quantum attacks.

Meanwhile, the Bitcoin community is discussing quantum-resistant cryptographic algorithms to future-proof the network. These initiatives are being explored in response to the growing awareness of quantum threats, and the shift toward secure address types is encouraging.