Chinese researchers recently claimed to have successfully breached encryption algorithms used in banking and cryptocurrency with a quantum computer . Led by Wang Chao at Shanghai University, the team utilized a technique called quantum annealing to target algorithms like Present, Gift-64, and Rectangle, all of which are foundational to the advanced encryption standards (AES) that secure crypto wallets. A Significant Threat AES-256 is considered one of the most secure encryption methods, but experts warn that quantum computing could soon challenge this status, threatening established password protections. Wang and his team likened their approach to an AI algorithm that optimizes solutions on a global scale. Unlike traditional algorithms that explore every option, quantum tunneling allows particles to pass through barriers, enabling quantum computers to find solutions more efficiently. This is the first time a true quantum computer poses a significant threat to full-scale SPN structured algorithms currently in use, the team stated. As quantum computing looms as a concern for the crypto industry, it raises fears of exposing user funds to theft at unprecedented speeds. Still Some Limitations While the breakthrough is significant, researchers noted that various limitations, such as environmental factors and hardware constraints, currently prevent a full-scale quantum attack. They also confirmed that the attack did not reveal specific passwords but achieved greater gains than before. The findings were published in The Chinese Journal of Computers through The China Computer Federation on September 30th. Ethereum (ETH) co-founder Vitalik Buterin has suggested a potential remedy, proposing a hard fork of the blockchain to mitigate future quantum risks, which could be implemented swiftly to protect user funds.
