It uses cryptography, a form of coding originating from the Second World War, to process transactions securely. Its major appeal is it’s almost impossible to crack and is independent from established financial systems. It is usually traded through specialist online exchanges. But Google announced it has built a quantum computer that can crack mathematical calculations previously thought impossible – including cryptography.
Existing computers manipulate individual bits, which store information as binary 0 and 1 states, but quantum computers manipulate information using powerful quantum bits, or qubits.
They can do in seconds what it would take a regular supercomputer thousands of years to do.
But Charles Hayter, chief executive of and cryptocurrency data website CryptoCompare, told Forbes that cryptocurrencies will weather the information storm.
He said: “Cryptocurrencies can be updated with quantum-resistant tech.
“This is just a continuation of the age-old arms race between crackers and enciphers.”
“Google’s supercomputer currently has 53 qubits,” added Dragos Ilie, a quantum computing and encryption researcher at Imperial College London.
“In order to have any effect on bitcoin or most or most other financial systems it would take at least about 1500 qubits and the system must allow for the entanglement of all of them.”