Key Points

1. quantum computing can solve optimization problems better

References

Key Concepts

Quantum Computing Updates

https://www.eetimes.com/document.asp?doc_id=1335027

Quantum Security and Blockchain - 2024 - Daniel Szego

https://www.youtube.com/watch?v=WRvkKTPkrQs

Summary of "Quantum Threats and Blockchain Systems - Mortgage Industry Subgroup Update"

1. Meeting Context and Introductions:

   • The meeting was conducted under the Linux Foundation's Decentralized Trust Financial Markets Mortgage Subgroup.
   • Key emphasis on adhering to antitrust policy and code of conduct, fostering open, inclusive discussions.
   • Highlighted new members, such as Hedera Hashgraph and others, and provided resources like the subgroup's Wiki.

2. Blockchain in the Mortgage Industry:

   • Discussed how blockchain replaces centralized data resources, such as land records, enabling global access and property tokenization.
   • Benefits include streamlined property ownership transfers, peer-to-peer exchanges, and integration with AI for automating tasks like property appraisals and portfolio optimization.

3. AI in Mortgage Applications:

   • Explored AI's potential in analyzing data, predicting market trends, and optimizing pricing strategies.
   • Cited examples from the 2024 Mortgage Cadence Ascent conference, emphasizing AI's evolving role in the industry.

4. Emerging Quantum Threats:

   • Presented by Daniel Zhu, focusing on quantum computing's implications for blockchain and IT systems.
   • Quantum computers could exploit weaknesses in cryptographic systems like RSA encryption and blockchain algorithms.

5. Quantum Algorithms and Cryptographic Risks:

   • Key algorithms such as Shor's (for factoring large numbers) and Grover's (for faster search) threaten classical encryption systems.
   • Highlighted risks like "store now, decrypt later" attacks, where sensitive data is stored until quantum capabilities evolve.

6. Blockchain-Specific Quantum Risks:

   • Addressed vulnerabilities in mission-critical blockchain use cases, such as identity verification and financial systems.
   • Explored mitigation strategies, like increasing cryptographic key sizes and adopting post-quantum cryptography.

7. Quantum Readiness and Mitigation:

   • Discussed preparedness for quantum threats, including the development of quantum-resistant cryptographic standards (e.g., from NIST).
   • Mentioned the importance of regular risk evaluations and adopting hybrid cryptographic approaches.

8. Practical Applications and Future Outlook:

   • Examples included quantum physics-based random number generation and key exchange systems.
   • Stressed the importance of continual advancements in cryptography and blockchain resilience.

9. Implications for Bitcoin and Other Cryptocurrencies:

   • Speculated on the potential impact of quantum attacks on Bitcoin, with signs like the movement of Nakamoto addresses indicating vulnerability.

10. Conclusion and Q&A:

    • Discussed the rapid advancements in quantum computing and parallels with AI's disruptive trajectory.
    • Concluded with expert opinions and audience questions about the practical timeline for quantum threats and strategies for mitigation.

Quantum Computing: The Next Frontier in Cybersecurity

Quantum computing, once considered a distant theoretical concept, is now on the verge of transforming industries, particularly cybersecurity. With tech giants like Microsoft, Google, IBM, and startups such as IonQ and Rigetti making strides in quantum research, we’re beginning to see how quantum could reshape data security and encryption as we know it.

The Role of Quantum in Cybersecurity

• Breaking Encryption: Traditional encryption methods, like RSA and ECC, rely on the complexity of factoring large numbers, a task that would take classical computers centuries. Quantum computers, however, could break these encryptions within seconds using algorithms like Shor’s algorithm.
• Post-Quantum Cryptography (PQC): To counter the threat, researchers are developing quantum-resistant algorithms. In 2022, the U.S. National Institute of Standards and Technology (NIST) selected four encryption algorithms as potential standards for PQC.

Use Cases in Cybersecurity:

• Secure Communications: Companies like Quantum Xchange are using quantum key distribution (QKD) to secure data transmission against eavesdropping.
• Financial Data Protection: JP Morgan Chase is exploring quantum for secure transactions, anticipating that quantum-encrypted channels will soon be essential for financial systems.

Statistics:

• By 2030, up to 25% of all data globally may require quantum-safe encryption, driven by the quantum threat to current encryption standards. (Source: Gartner)

A Quantum Leap: A Looming Threat to Our Digital Security

growing concerns about the potential impact of quantum computing on our digital world. A prime example is the recent news of Chinese researchers breaking RSA encryption (PDF) using a quantum computer. While experts have cautioned against overstating the significance of this achievement (PDF), it serves as a stark reminder of the looming threat.

Even if a quantum computer isn't available today, it could be built before the organization can fully migrate to quantum-resistant encryption.

IBM Announces 50 X Faster Quantum Computer for Quantum Advantage

US CBP focuses on Post-Quantum Cryptography

CBP blocks approximately 100 million network cyber attempts each workday. These attacks are increasingly sophisticated, targeting government systems and critical infrastructure with the intent to intimidate targets, steal sensitive information, or disrupt operations. Given the criticality of our IT systems and the immense value of the data stored within them, this threat landscape requires constant vigilance and innovation.

Right now, encryption keeps personal and system data safe by transforming information or data into a code, making it impossible for others to read without the right “key.” Soon, quantum computers will be able to read coded/encrypted data easily without using a key. This will leave things like bank accounts, health records, private messages, and government data at risk.

The federal government first recognized the importance of post-quantum cryptography (PQC) with the Office of Management and Budget (OMB) Memorandum M-23-02 and the Quantum Computing Cybersecurity Preparedness Act. PQC addresses the “harvest now, decrypt later” threat

Implementing Quantum Communication

We undertook an ambitious project to develop a novel quantum teleportation protocol. This endeavor addressed one of the most pressing challenges in quantum networking: establishing reliable, secure communication between quantum nodes over significant distances.

Our first breakthrough came in successfully establishing a quantum channel between two networked nodes, as demonstrated in our network simulation interface. This visualization shows the real-time quantum state transmission between two communication endpoints, offering a clear representation of our protocol in action.

At the heart of our protocol lies quantum entanglement, a phenomenon we carefully studied and implemented. Using MATLAB, we developed sophisticated models to simulate and visualize the entanglement process, providing crucial insights into the behavior of quantum states during transmission.

 Using IBM's Qiskit, we simulated quantum circuits and gates essential for our teleportation protocol, allowing us to verify the quantum operations at a fundamental level. In parallel, we utilized PennyLane to explore the quantum-classical interfaces crucial for practical implementation. This multi-platform approach provided valuable insights into the protocol's behavior across different quantum computing architectures.

The protocol implementation focuses heavily on maintaining quantum coherence during transmission. We developed sophisticated error detection and correction mechanisms, allowing us to preserve quantum information integrity even under challenging conditions.

Potential Value Opportunities

Potential Challenges

Candidate Solutions

Step-by-step guide for Example

sample code block

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