Leveraging Quantum Cryptography for Quantum-Safe Blockchain Security

Introduction

The rapid advancement of quantum computing poses a significant threat to current cryptographic systems, including those used in blockchain technology. Stablecoins, which are digital assets designed to maintain a stable value, are particularly vulnerable due to their reliance on cryptographic security. Here we briefly explore the integration of quantum cryptography to ensure quantum-safe blockchain security, facilitating a smooth transition to a post-quantum world.

Stablecoins: Importance and Risks

Stablecoins have become a crucial component of the crypto-asset ecosystem due to their relatively stable value compared to other cryptocurrencies like Bitcoin and Ethereum. They are used for various purposes, including as a medium of exchange, a store of value, and a unit of account. However, their stability is not absolute, as evidenced by recent market events that exposed vulnerabilities in their underlying mechanisms and reserve assets.

Quantum Threats to Cryptography

Quantum computers, once fully realized, will be capable of breaking widely used cryptographic algorithms such as RSA and Elliptic Curve Cryptography (ECC) through Shor’s algorithm. This potential capability necessitates the development and deployment of quantum-safe cryptographic algorithms to protect digital assets and communications.

Post-Quantum Cryptography (PQC)

Post-Quantum Cryptography (PQC) refers to cryptographic algorithms that are believed to be secure against quantum attacks. The National Institute of Standards and Technology (NIST) has been working on standardizing PQC algorithms, with several candidates currently under evaluation. As of today, four algorithms have been selected into the fourth and final round, including CRYSTALS-KYBER and CRYSTALS-Dilithium, with the anticipation that these algorithms will be formally standardized by NIST before the end of 2024.

About PQA Labs and PQUSD

PQA Labs provides innovative quantum-resistant solutions to blockchain ecosystems. It specializes in developing applications and infrastructure to ensure security and functionality in the post-quantum era, including its flagship product, PQUSD.

PQUSD is the world’s first quantum-safe, fully compliant, fiat-referenced stablecoins that is 1:1 pegged to, and 100% backed by, US dollars. It can be deployed in use cases that improve the efficiency and security of financial transactions. It significantly reduces the likelihood of hacks and cyberattacks while maintaining the levels of cost, speed, and accuracy of these transactions. PQUSD can also be deployed to facilitate cross-border transactions and to reduce the fees and processing times associated with traditional methods.