How Does Shor’s Algorithm on a Quantum Computer Pose a Threat to This Assumption?
Shor's algorithm is a theoretical quantum algorithm that can efficiently solve the Discrete Logarithm Problem and, by extension, the Elliptic Curve Discrete Logarithm Problem (ECDLP). A sufficiently powerful, fault-tolerant quantum computer running Shor's algorithm could break 256-bit ECDSA keys in a matter of hours or minutes.
This represents an existential threat to all current public-key cryptography, including the security of most cryptocurrencies.
Glossar
Algorithm
Framework ⎊ Within cryptocurrency derivatives and options trading, a framework denotes a structured computational process designed to model, predict, or automate trading strategies, often incorporating elements of quantitative finance and market microstructure.
Shor's Algorithm
Algorithm ⎊ Shor's algorithm, a cornerstone of quantum computation, presents a profound challenge to contemporary cryptographic systems underpinning many cryptocurrency networks and derivative pricing models.
Existential Threat
Risk ⎊ An existential threat in financial markets, particularly within crypto derivatives, represents a catastrophic risk event capable of causing the total collapse or permanent cessation of a platform or the underlying asset class.
Discrete Logarithm Problem
Complexity ⎊ The Discrete Logarithm Problem (DLP) represents a foundational challenge in cryptography, particularly relevant to securing digital assets and transactions within cryptocurrency systems and financial derivatives.