Author: Kava Labs Source: medium

In articles related to AI-driven risk assessment, we have Learn how AI can enhance cybersecurity through anomaly detection and predictive analytics. However, what will happen if another independently innovative technology emerges and triggers a new technological paradigm shift in the field of decentralized finance (DeFi)? What would happen if this new technology could completely disrupt the very foundations DeFi relies on by breaking crypto?

With the development of quantum computing, many experts are also worried about the future. These concerns, which have existed since the early days of cryptocurrencies, have been exacerbated by Google’s announcement in the fourth quarter of 2024 of its latest quantum computer chip, Willow.

So, in this article, we will explore the principles of quantum computing, its potential threats to DeFi, and whether the industry should be wary of it in the future.

Comparing traditional computing with quantum computing

When discussing the threats of quantum computing, we first need to understand that it is fundamentally different from the traditional computing systems we are familiar with today. To begin to understand it, we have to drill down to the smallest unit of digital information — the bit. Bits are the basic building blocks of all modern computing technology and have historically been represented by 0 or 1.

This basic unit enables the structural development of modern computing technology on its basis. The power of binary systems allows us to build a solid foundation upon which larger and more complex systems can be built.

Quantum computing challenges the very nature of binary systems by creating an alternative to this unit of calculation. In quantum computing, an alternative quantum bit (qubit) has multiple possibilities not only in terms of where a conventional bit can be, but also in terms of whether it can be encoded as a 1 or a 0 with multiple realities.

Superposition state

Superposition state is one of the cornerstones of quantum computing, but it is very abstract. for some peopleIt may be difficult to understand. In traditional computing, the state of a bit is always 100% certain, either 1 or 0. In quantum computing, quantum bits (qubits) can represent both 1 and 0 at the same time. It is possible to imagine that something is and is not at the same time. This doesn't seem to make much sense in traditional thinking and classical models.

The simplest way to explain this phenomenon is through the 20th century physicist Erwin Schrödinger and his uncertainty principle of quantum mechanics theory. You may be more familiar with Schrödinger's cat experiment, in which we were asked to imagine a situation in which a cat was placed in a sealed box containing a Geiger counter and a piece of radioactive material that was decaying Poisonous gas will be released. Theoretically, since the decay process of radioactive materials is indeterminate, the cat is technically in a state of both life and death until the box is opened, since we can't be sure which state is accurate until we open the box and see for ourselves. Qubits are both "alive" and "dead" until they are forced to perform calculations.

Entangled state

If you are still continuing to read, congratulations, the concept of quantum computing is still Without breaking your brain. So, now that we understand what qubits are and how they are represented, we need to further explore how the particles inside each qubit relate to each other. This is called an entangled state, which is the second cornerstone of quantum computing.

We have seen how quantum computing works on a thought experiment model similar to Schrödinger's Cat. However, quantum computing takes this analogy to a new level with the help of entangled states. Quantum computing is not just about maintaining two computational states at the same time, but involves many more situations that interact and change each other through multiple locations. Imagine you are navigating a maze. In traditional computing, if your first path reaches a dead end, it can be classified as zero. The second attempt also fails and the process continues sequentially until the correct answer is found. In the same situation, quantum computing will map all routes at the same time, and each failed route and successful route will affect the effects of all other scenarios.

Thought experiment or something else?

As difficult as it is to try to understand the theory of quantum computing, it is crucial if we are to consider innovative increases in computing power. The superposition and entanglement states of qubits make quantum computersThe scale and speed of problems that computing can handle far exceed anything we can understand today.

Our article on the limits of technological innovation demonstrated the different sizes of modern digital information. From how many kilobytes it takes to store an average word processing file for a five-page document, to how many MB it takes to store a three-minute MP3 audio file, understanding the scale of digital data is a fundamental building block for understanding why the reconstruction from bits to qubits yields such The key to the compounding effect.

With this frame of reference, we can begin to understand the power of quantum computing. Google claims that its new quantum chip, Willow, will solve a problem in five minutes that would take the fastest conventional computers on the market today ten quadrillion years (10 to the 27th power of years). Five minutes versus 10,000,000,000,000,000,000,000,000 years, and here’s how.

The end of modern cryptography?

You may have seen that quantum computing may begin to pose a systemic threat to the decentralized finance (DeFi) industry. Such computing power is exactly the kind of technology that could potentially replace the cryptographic security that underpins the entire blockchain ecosystem. Brute force attacks can instantly reveal private key information and steal user accounts.

As mentioned in our previous article, the interoperability integration of artificial intelligence and blockchain may lead to a "poison pill" effect and malicious behavior who operate in it. Now, combining these theories with the potential of quantum computing, it’s easy to imagine a future where the entire DeFi space can be completely disrupted in a matter of minutes.

Reason for Optimism

If you are worried about the threat that quantum computing poses to DeFi, there are still several reasons to be optimistic. First, if you haven't realized it yet, quantum computing is extremely complex, difficult, and expensive. Today, only a handful of quantum computers exist, mostly developed in tightly regulated and controlled environments at companies such as IBM, Google, Amazon and Alibaba. These companies are not undercutting the interest of DeFi crypto security. Doing so would undermine the same cryptographic security used to protect traditional banking and defense infrastructure, including nuclear reactors and weapons systems.

Second, we often underestimate the importance of our industry. Currently, the total value (TVL) of the DeFi space is $125 billion,It is still a very young and small industry by comparison. Money market banks have a market capitalization of over $90,964.7 billion, and integrated oil and gas has a market capitalization of over $109 billion. While this may sound pessimistic, if quantum computing technology accelerates and becomes a threat, attacking the DeFi space will be the least attractive target because everything else in the world will be equally vulnerable, if not more vulnerable. Even if DeFi becomes a target, we will face the social consequences of quantum computing attacks, especially in other more pressing areas, such as global supply chain disruption, AGI (Artificial General Intelligence), or nuclear weapons deployment. Securing DeFi and private keys may no longer be our top concern.

In addition, as technology advances and new threats emerge, new solutions will emerge. Post-Quantum Cryptography is an important topic in this field currently. Developers are already acutely aware of the threats that quantum computing could pose if it were unleashed without adequate security guarantees. The National Institute of Standards and Technology (NIST) is leading efforts to establish a global post-quantum encryption standard.

We should also recognize that the emergence of quantum computing is a positive force. Having the powerful computing capabilities enabled by quantum computing models will enable unprecedented discoveries in areas ranging from space travel to the integration of the global Internet of Things and artificial intelligence. Through our series of articles, we’ve seen AI accelerate innovation in smart vehicles, medical breakthroughs, and drug discovery. Quantum computing will further enhance and accelerate the pace of discovery faster than even the most optimistic futurists imagine.

Finally, we should acknowledge that quantum computing is still in its infancy. Even with the advent of the Willow quantum computing chip, practical real-world applications of quantum computers are still limited. To be fully operational and integrated with the real world, quantum computers must broadly index the current digital environment. Transforming industries to withstand the threat of quantum computing, or simply prepare for its benefits, will be a daunting task that society must overcome. Whatever the future of quantum computing holds, it's destined to be an interesting and disruptive path. How DeFi, AI, and post-quantum crypto respond will be one of the most defining periods of the 21st century.