Security and Economics of Cryptocurrencies in the Quantum Era

Abstract

The paper explores the security of cryptocurrencies in the quantum age and the impact of quantum computing on blockchain technology. It highlights the risks that quantum computers pose to traditional cryptographic schemes, such as public-key cryptography, which currently protects transactions on blockchain networks. Quantum algorithms, such as Shor's, could compromise security, allowing attackers to decrypt private keys. Solutions to these challenges are addressed, such as post-quantum cryptography, which includes cryptography based on grids and exotic digital signatures, such as ring and blind signatures, which improve the privacy and security of transactions. The paper also discusses the evolution of consensus mechanisms, highlighting innovations such as Proof of Space (PoSpace) and Delegated Proof of Stake (DPoS), which improve the scalability and efficiency of blockchain networks, and the need to educate users on secure practices.