The recent advancements in quantum computing have sparked concerns about the potential risks to blockchain technology. Google's announcement that a powerful quantum computer could compromise legacy blockchains with relatively less effort has heightened these concerns.
For XRP holders, experts suggest that the architecture of XRP may provide better protection against such threats compared to Bitcoin. XRP operates on the XRP Ledger, an open-source and decentralized blockchain, which is utilized by Ripple for facilitating cross-border transactions. Let's delve into the details of this issue step by step.
The primary threat to blockchains comes from the potential of quantum computers to reverse-engineer private keys from exposed public keys, thereby allowing unauthorized access to funds. Typically, when a transaction is sent, the public key is exposed to the network, making the account vulnerable to quantum attacks. However, if an account has only received funds and never sent any, its public key remains unexposed, rendering it quantum-safe by default.
A recent audit of the XRP Ledger found approximately 300,000 accounts holding 2.4 billion XRP that have never sent funds, making them quantum-safe. In contrast, there are dormant whale accounts that have transacted in the past, exposing their public keys, but these account for only 0.03% of the circulating supply.
The XRP Ledger offers a key rotation feature that allows users to change their signing key without moving funds, providing an additional layer of protection. This feature is not available on the Bitcoin blockchain, making it more vulnerable to quantum attacks. According to Mayukha Vadari, a staff software engineer at Ripple, the escrow feature on the XRP Ledger also provides protection against quantum risks by using time locks that prevent withdrawal until a specified time has passed.
In comparison, the quantum threat to Bitcoin appears more significant due to the large number of early bitcoins mined using the P2PK format, which directly exposes public keys. Approximately 6.9 million BTC, nearly 35% of the circulating supply, are vulnerable to quantum attacks. While Bitcoin developers are working on proposals to develop quantum resistance, the lack of a key rotation feature leaves holders more structurally vulnerable. In conclusion, the design of XRP and the features of the XRP Ledger may provide better protection against quantum computing threats compared to Bitcoin.