New: Wallet recovery made easy with Ledger Recover, provided by Coincover

Get started

Up your Web3 game

Ledger Academy Quests

  • Test your knowledge
  • Earn POK NFTs
Play now See all quests

Quantum Computing Meaning

May 19, 2023 | Updated Mar 18, 2024
Quantum computing is an emerging computer science branch using the laws of quantum mechanics to solve problems considered too complex for standard computers.

What is Quantum Computing?

Quantum computing” involves quantum mechanics that is used by the system to calculate and give results. Quantum bits or qubits – which refer to the basic unit of data in quantum computing–play the same role as bits in standard computing.

Imagine you have a large dataset containing a list of items, and you want to find a specific item within that dataset. With a classical computer, you would typically perform a sequential search by checking each item one by one until you find the desired item.

However, with a quantum computer, you can leverage algorithms to search through the dataset much more efficiently. It allows quantum computers to perform parallel searches, dramatically reducing the number of steps required to find the desired item.

In this simplified example, quantum computing demonstrates its potential for speeding up search processes and solving problems with large solution spaces. While this example doesn’t reflect its full complexity and capabilities, it illustrates the potential of the technology and how it can offer computational advantages for certain types of problems.

Quantum computers include three main components:

  • The area housing the qubits (maintained at temperatures above absolute zero for maximum coherence and minimum interference).
  • A method for sending signals to qubits, i.e., microwaves, voltage, and laser.
  • A conventional computer to run programs.

Quantum computers are able to concurrently evaluate several quantum states – any state of a physical system specified by particular values of the system’s attributes– and store multiple values, giving them an edge in data processing speed over general algorithms and computers. To operate faster, quantum computing algorithms utilize entanglement (when two or more systems are strongly correlated that information about one system gives information about the other system) to perform calculations at a heightened speed.

Is It a Threat to Cryptography?

Quantum computing has the potential to pose a significant risk to cryptographic security because its resources can potentially break certain types of encryption. This means that quantum computers could potentially reverse engineer private keys and decipher messages. This capability would make it a threat to crypto as well because blockchain networks rely on cryptographic hashing to maintain privacy, secure transactions, and validate identities. 

However, blockchain networks can minimize this risk by layering computers with quantum-proof encryption, where new cryptography is subtly introduced to hardware and software based on the ciphers used in an organization.

Can Quantum Computing Affect Bitcoin Mining?

Bitcoin mining is heavily reliant on classical computers to solve computationally complex mathematical equations to validate and verify transactions and introduce new blocks to the network. This could make quantum computing a potential threat to the Bitcoin mining process.

The minting process expends a lot of effort from miners using classical computers but would be no match for the speed and power of quantum computers. Therefore, quantum computing could theoretically give a few miners control over a majority of the mining power, potentially making the network less decentralized. Consequently, it would render the existing mining infrastructure and equipment ineffective. 

On the flip side, practical quantum computing is still in its infancy and large-scale production is several years away. The crypto community is also looking at technologies to check the potential impact of quantum computing if it ever becomes powerful enough to render the current mining process counterproductive.

Depeg

A depeg is a phenomenon that occurs when a stablecoin, which is a cryptocurrency whose value is pegged to another currency, decreases or increases in value relative to the asset it is pegged to.

Full definition

Proof of Stake (PoS)

Proof of stake (PoS) is a consensus mechanism that selects validators based on the amount of cryptocurrency they stake to process transactions and produce new blocks.

Full definition

Decentralized Exchange (DEX)

A decentralized exchange (DEX) is a peer-to-peer marketplace that allows users to directly trade with each other. It doesn’t need a custodian or intermediary to hold the users’ funds or facilitate transactions.

Full definition