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- Quantum computing threatens the core cryptography used in distributed ledgers.
- Global standards now guide a shift toward post-quantum security.
- Hedera has started its transition but key upgrades are still pending.
According to the blog, distributed ledgers depend on public-key cryptography. Networks such as Hedera, Bitcoin, and Ethereum use elliptic-curve signatures like ECDSA and Ed25519. These systems rely on mathematical problems that classical computers cannot solve quickly.
Quantum computing revolutionizes the underlying principle. Shor’s algorithm solves such tasks in polynomial time. With sufficient processing power, a quantum computer would be able to derive the private keys from the public keys. That way, an attacker could counterfeit transactions and hijack the account. Such scenarios do not pose an imminent threat. Nevertheless, developments are proceeding rapidly.
Specialists believe there is a considerable probability of seeing a cryptographically effective quantum computer by the mid-to-late 2030s. It imposes the necessity of early preparation. Public key systems ensure the security of the transactions, wallets, and consensus. An attack on this front would have implications for all major blockchain platforms.
Standards Push the Shift to Post-Quantum Security
The process of implementing post-quantum cryptography is currently underway. In 2024, the National Institute of Standards and Technology completed standards for three algorithms. ML-KEM is used for key exchange, while ML-DSA and SLH-DSA are used for creating digital signatures.
Such algorithms are built upon quantum-resistant mathematical structures and attempt to substitute existing insecure cryptographic tools. Two more standards are under development and might become available by 2027. Tech companies have initiated the migration process.
Modern browsers, messaging applications, and cloud services make use of hybrid cryptography, which means combining classical and quantum-resistant techniques in order to maintain compatibility. Key exchanges are migrating rapidly on the web.
Digital signatures will be the most difficult part because of changes needed for digital wallets and other technologies. Migration plans have been also proposed by governments and organizations. The full transition is expected to take place within the decade.
Hedera Strategy and Remaining Challenges
The network currently utilizes some quantum-resistant techniques. In particular, SHA-384 and AES-256 are used for hashing and encryption, respectively. They still offer adequate protection from any kind of attack by quantum computers. However, the network’s signatures still rely on ECDSA and Ed25519 algorithms, which quantum computing can easily break.
The process of migration to quantum-resistant technology is designed to be staged. First of all, post-quantum TLS is going to be implemented to improve the transport layer of connections between nodes. The next step implies switching to hybrid signatures for events.
It will ensure safety during the transition. Finally, new quantum-resistant key types will be added to facilitate the upgrade of private keys owned by users. Developers face a significant challenge due to the larger size of post-quantum signatures.
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