Monday Market Musings | Week 42 | 2024

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Crypto Movement

Like every week, there is plenty to tell about the crypto market. It would also be a surprise if there were no movement to report. Even if the price remains relatively flat, there is always something to tell, but now the price is finally moving again after about 8 months. Is that immediately positive? That of course always remains the big question with every price movement of Bitcoin. In any case, we know there are currently no indications for a real altcoin season. On the contrary. Bitcoin dominance has even increased, which rather indicates that altcoins can fall a bit harder. For the medium term, the prospects for an altcoin season are slightly more favorable, but of course, we have no use for that now. So back to Bitcoin. For the time being, we have to wait and see what Bitcoin will do ... the price is cautiously moving towards the most recent All-Time High. The big question is of course, will we break through that, or do we have to be patient a bit longer? That it will eventually be broken through is more of a certainty ... but when? The fact that there is movement again is in my opinion positive in any case. It makes it a bit more exciting after those long months in which we have continuously moved sideways.

Crypto’s Encryption Meets Quantum Decryption

But now that the price is making positive movements again, it is also time to be even more attentive. And the concerns about the security of crypto in general should not be taken too lightly. There is namely a great potential danger for the entire crypto industry that will have to be intervened in time. Every blockchain will need extra protection against the looming danger of quantum computers. With these quantum computers, it is possible to break any private key. And that is exactly what crypto is built on. The cryptography that is an essential part of the security of crypto can be cracked. Last weekend the news came out that several Chinese researchers have broken cryptographic algorithms with the help of a quantum computer. Using Quantum Annealing, the researchers focused on the algorithms Present, Gift-64, and Rectangle, which form the basis for the structure of the Substitution-Permutation Network (SPN). This supports the Advanced Encryption Standards (AES), widely used to encrypt crypto wallets.

Although AES-256 is considered one of the most secure encryption standards, the researchers warn that quantum computers could soon pose a threat to this security, especially now that they have already broken certain related algorithms. At the moment, it is not yet the case, but the day of reckoning seems to be approaching rapidly. And then what?

There is a solution, but it will have to be implemented in every blockchain. Each block of the blockchain will have to be provided with a new type of watermark. That watermark should consist of quantum particles. In this way, you create a quantum blockchain and protect the blockchain. You can therefore protect a blockchain with exactly what is problematic.

Satoshi or not, Craig Wright Keeps Throwing Billions

If you don't feel like worrying about the safety of Bitcoin, then you might be more interested in following the ongoing cases of Craig Wright. Earlier this year, the court had to tell him that he is not Satoshi Nakamoto. Despite all the false evidence that his lawyers tried to present, the judge did not fall for it. But he has found a new way to get attention again. And of course, this time it is also through a lawsuit. This time he wants 1 trillion in damages. And he wants to prove that not Bitcoin (BTC) is the real Bitcoin, but Bitcoin SV (BSV) is supposedly the real Bitcoin. By the way, he also continues to claim the original Bitcoin Protocol. We wonder what forged documents his lawyers will present this time. The chance of success in this new case is estimated to be just as low as his previous case. Get the popcorn ready!

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very concerning, ain't it?

It's not the new we're hoping for I think ... so yeah, it's a bit concerning to say the least.

At least right now isn't quantum computing still pretty cost prohibitive? The government probably has access to it, but not necessarily nefarious parties. Although the government is usually also a nefarious party!

I do think that quantum computing is not yet available to most of us, but the mere fact that it is possible to crack the cryptography that most blockchains currently use is very worrying. It is very possible that someone with access to it will suddenly abuse it. I think this is a big challenge for crypto devs to tighten up security for the future.

Better them than me! I have little doubt the day is coming when some fundamental changes have to happen.