Cardano (ADA), working with the Ethereum Foundation, launches a new quantum-resistant identity wallet

In a move that could have huge implications for the future of blockchain security and digital identity management, Cardano has announced a new identity wallet designed to be secure against quantum computing threats.

Announced by Frederic Gregaard, CEO of the Cardano Foundation, the wallet is made possible by the integration of post-quantum cryptography (PQC) to safeguard users against potential threats posed by quantum computing.

Standard cryptographic methods (such as RSA and ECC) are vulnerable to quantum attacks, but PQC algorithms are designed to resist such vulnerabilities.

This partnership will begin with the development of an individual identity wallet, and from there the goal is to continue developing quantum-secure solutions that can be implemented across various blockchain platforms.

Earlier this month, Cardano launched an open-source digital identity platform called Veridian. The platform gives users control over their digital identities by utilizing decentralized identifiers (DIDs) and verifiable credentials. Veridian is designed to be interoperable across different systems and industries, which is yet another move to increase privacy and security in digital interactions.

The introduction of quantum-resistant technologies like the identity wallet and Veridian platform positions Cardano at the forefront of blockchain security innovation.

Why Quantum Computing Threatens Current Blockchain Encryption

Quantum computers use quantum bits instead of classical bits and can process massive amounts of information in parallel. Whereas traditional computers might take centuries to solve complex problems, a sufficiently advanced quantum computer could solve them in a matter of minutes or hours.

This poses a serious problem and threat to the crypto industry, as most of today’s public-key cryptography (which is used to secure blockchains, wallets, exchanges, and communications) relies on mathematical problems that are hard for classical computers but easy for quantum ones.

As such, algorithms such as RSA and ECC, digital signatures, or key exchanges are at risk considering that a powerful quantum computer could break private keys from public keys, forge digital signatures, or steal crypto assets without alerting the system.

Cardano & Ethereum Lead PQC Adoption to Counter Quantum Threat

Luckily for the crypto industry, security experts believe practical, large-scale quantum attacks targeting current cryptography are still years away, although attacks where data is stolen today and decrypted later on are present.

Still, it’s good to be prepared, and by adopting PQC, Cardano and Ethereum are preparing for the quantum era before it arrives, which should benefit the crypto industry as a whole.