As we have communicated in previous briefings, the advent of quantum computing and the utility behind this technology is an increasing concern for digital asset investors. Thus, the digital asset ecosystem faces three key risks as it maneuvers its way toward a future of quantum coexistence: the vulnerability of modern encryption protocol, lost value protection, and ecosystem disruption. While these risks pose an incredible challenge for crypto to address and overcome, the solutions being derived are shaping up to be the greatest investment opportunity digital asset investors have seen since the birth of Bitcoin.
Modern Encryption Protocol is Vulnerable
A user’s public key is directly obtainable from their wallet address when transactions take place. If a strong enough quantum computer is utilized, it can quickly decipher the private key through simply knowing the public key. In this case, the world’s most sensitive data, not just Bitcoin, will be vulnerable to security breach.
According to Deloitte, 25% of Bitcoin’s circulating supply faces the risk of value loss due to future quantum computing advancements. These bitcoins are vulnerable because their owners, who have previously transacted with them, likely lost their private key and cannot reacquire their assets. These lost wallets are at risk of data breach because their initial transaction gives quantum hackers insights into their wallet address, and thus their public key and then private keys. For more information on public and private keys, visit our Digital Asset Investor Guide to Cryptography.
As data emerges as the most valuable asset in the world with our increasingly digitized global infrastructure, enhancing our encryption techniques as quantum computing develops will future proof the entire universe of data.
Lost Value Protection
The security of digital assets is the underlying value driver of the ecosystem. If the foundation of digital assets – the security that validates their worth – is broken, then the value of the entire crypto ecosystem will be vulnerable if left improperly protected.
Ecosystem Disruption
Once quantum computing’s capabilities arise, the financial freedom that crypto offers will be at risk as investors’ control over their digital assets is threatened, taking credibility away from crypto as both a means transaction and a store of value asset.
Looking to the Future
Naysayers will claim that quantum computing will end crypto. What these cynics hate to acknowledge is crypto’s overwhelming resiliency. Unfortunately for them, the ecosystem has too much momentum to fail. Time and time again, from all-time highs to 85% price corrections, the relentless innovation that crypto is founded upon has enabled the ecosystem to bounce back with greater strength, security, and scalability to prove that it is not going anywhere.
The beauty of crypto is that it offers banking for the unbanked, financial freedom for economic instability, and ultimately, hope for the hopeless. Rooted in the vision for a more unified world, crypto’s resiliency will engineer a future of quantum-resistant value protection and financial empowerment.
As revealed on December 7th, Crown Sterling’s quantum-proof encryption solution is pioneering the future of digital asset security. Their application, CrownEncryptOTP, restores confidence to the digital asset community through its integration with the Crown Sterling token, crypto’s first quantum-resistant coin. As Crown Sterling sets a firm foundation for future data security enhancements, the continued effort to protect the world from quantum computing risks will be the greatest investment opportunity of the 21st century, especially for digital asset investors.
By Liam McDonald
Disclosures: Not investment advice. It should be assumed that Sarson Funds or its affiliated managers hold positions in all projects that are discussed. It is not possible to invest in any project directly through Sarson Funds, Inc. or its affiliated managers. Any investment product offered by managers affiliated with Sarson Funds should be assumed to be only available to Accredited Investors and subject to the individual terms and conditions of that offering including but not limited to those eligibility requirements associated with U.S. Securities Regulation D, section 506c. Talk with your financial advisor before making any investment decisions or have them contact Sarson Funds directly at [email protected]
