The recent advancements in quantum computing have sparked concerns about the potential risks to legacy blockchains. Experts suggest that XRP's architecture may be better equipped to handle these threats than Bitcoin's. XRP operates on the XRP Ledger, a decentralized, open-source blockchain. Ripple, a fintech company, utilizes XRP for cross-border transactions.
Let's examine the details step by step. The primary threat to blockchains is the potential for a powerful quantum computer to reverse-engineer private keys from exposed public keys, allowing attackers to drain funds. Typically, public keys are exposed when a transaction is sent, and only the wallet address is visible on the blockchain when funds are received. This means that account activity, rather than balance or address age, is what makes users vulnerable to quantum attacks.
A recent audit of the XRP Ledger found that around 300,000 accounts holding 2.4 billion XRP have never sent funds, making them quantum-safe by default. However, there are dormant whale accounts that have transacted in the past and exposed their public keys. These accounts, holding 21 million XRP, are at risk if a quantum computer is developed. The XRP Ledger's key rotation feature allows users to swap their signing key without moving funds, providing an additional layer of security.
Mayukha Vadari, a staff software engineer at Ripple, highlighted the escrow feature as another defense against quantum risk. Funds locked in escrow with a time lock are safe due to logical constraints rather than cryptography. In comparison, Bitcoin's exposure to quantum threats appears more significant. A substantial portion of early bitcoin was mined using a format that exposed public keys directly, making them vulnerable to quantum attacks.
Approximately 6.9 million BTC, nearly 35% of the circulating supply, are at risk. Bitcoin's lack of a key rotation feature leaves holders with limited options to protect their funds, making them more vulnerable to quantum attacks.