The recent advancements in quantum computing have sparked concerns about the potential risks to blockchain networks. Experts suggest that XRP's architecture may be better equipped to handle these threats than Bitcoin's.
The XRP Ledger, an open-source and decentralized blockchain, is used by Ripple for cross-border transactions. A key factor in XRP's favor is that a significant portion of its accounts have never sent funds, keeping their public keys private. Approximately 300,000 XRP accounts, holding around 2.4 billion XRP, have only received funds and have not exposed their public keys to the network.
These accounts are considered quantum-safe by default. However, some dormant whale accounts that have transacted in the past and exposed their public keys are at risk. The XRP Ledger's feature allowing for signing key rotation without moving funds provides an additional layer of security. This feature enables users to change their account's signing key without having to switch accounts or move funds, thereby keeping their assets safe.
Mayukha Vadari, a staff software engineer at Ripple, also pointed out the escrow feature as a defense against quantum risk. The escrow feature allows for funds to be locked with a time lock, making them inaccessible until a specified time has passed. While this protects the funds, the account that locked them can still be vulnerable to quantum attacks. In comparison, Bitcoin's exposure to quantum threats appears more significant due to its larger scale and the use of the P2PK format, which directly exposes public keys in transaction outputs.
Approximately 6.9 million BTC, nearly 35% of Bitcoin's circulating supply, are vulnerable to quantum attacks. Bitcoin holders face a structural problem, as the blockchain lacks a key rotation feature, forcing them to move funds to a new address and exposing the old address's public key in the process.
Although Bitcoin developers have initiated proposals to develop quantum resistance, XRP's current design and features may provide it with an advantage in terms of security against quantum computing threats.