The Emergence of Quantum Computing and its Impact on the DeFI Space
The good times have been rolling in for the DeFI Space within 2024 and with every growth that comes around, there is always room for innovators to bring fresh new ideas to the community. From the Rise of NFTs in 2021 to the Dynamic Shift of RWAs in 2024, every Bull Run has presented an exciting new twist into the Era that defines the DeFI Space. The latest innovation around the block surrounds the word “Quantum Computing” which has generated plenty of excitement and concerns for the community moving forward. So what does the term “Quantum Computing” really mean? And what are its potential impacts to the DeFI Space?
What is Quantum Computing?
Technology has always been a part of our daily lives so much so that it is practically impossible to live without your mobile devices or PC. This is the main blueprint for the future of our world where everything is accessible digitally and powered through an important invention called the internet. The Internet throughout its tenure so far has successfully brought us the community closer and made our daily lives easier but it will not stop there as technology continues to evolve in the modern age.
The internet has an unlimited potential for every innovator to harness its capability and have evolved throughout its inception in the 1990s. The Internet kicked off its journey as “Web 1.0” where the information within the web is in “Read Only” format and the community cannot interact or modify the data. This is important in ushering the community to use the internet during the early age and build popularity before its next generation.
Web 2.0 came to life in the late 2000s where social media such as Facebook, Skype and MSN started to grow in popularity. Web 2.0 provides us a chance to interact with the information and brings the community closer as we can communicate and modify the data that are posted within the web. Two decades later as the users for social media platforms such as Facebook and Youtube encompass our global population, Web 2.0 still represents the biggest technology invention that has come to fruition within this century.
Obviously as the new decade came, the next generation of the Web referred as Web 3.0 came to life with its new technology innovation. Web 3.0 came to existence due to many breakthroughs such as Blockchain Technology, Machine Learning and Artificial Intelligence which expand the capabilities of the web and redefine our interaction with information. Web 3.0 allows the user to efficiently organize and receive data as interactions are available from both sides of the system.
Blockchain Technology and Artificial Intelligence has been dubbed as the next great invention after the internet and social media while its role is deemed critical in defining the new era of the digital world. Blockchain Technology due to its decentralized and secure network had been instrumental in building the DeFI Space as what we know today but it may face disruption as the next evolution of technology came to life.
While most of the publicity would focus on A.I and how its poised to reshape the world, Quantum Computing has been looming in the background as the next evolution in our computing capabilities. What is Quantum Computing? Quantum computing is an area of computer science that uses the principles of quantum theory which uses subatomic particles Quantum bits (qubits) instead of electrical impulses.
With these capabilities Quantum Computing has higher capabilities in solving complex problems that Classical Computers might struggle to do. Despite its recent rise, Quantum computing capabilities was explored by Richard Feynman highlighting its advantages and application back in the 1980s. This theory was further expanded by IBM and Stanford University published the first implementation of Shor’s algorithm, factoring 15 into its prime factors on a 7-qubit processor.
IBM processor currently leads the Quantum Computing space with Google following suit to adopt into its various platforms. Part of the reason for this race for Quantum Computing is who will take the edge in the Digital World as it has the capability to outperform Supercomputers with cheaper running cost. Quantum Computing also has the capability to explore many different permutations to solve problems which also makes it much more efficient and rapid.
How does it work? Quantum Processor is in the size of a wafer that is not bigger than your laptop and a hardware system made up mostly of cooling systems to keep the superconducting processor at its ultra-cold operational temperature. This Processor will then be integrated to your computer devices to perform high octane computations that are needed by the user for many complex networks.
Quantum computing relies on three fundamental principles:
- Superposition: Quantum bits, or qubits — the basic unit of information, similar to a bit in classical computing are different from classical bits because they can be in multiple states at the same time. This unique property enables quantum computers to handle large amounts of data simultaneously.
- Entanglement: When qubits are entangled, they instantly share information, no matter how far apart they are. Quantum computers can solve complex problems more efficiently because of this phenomenon.
- Decoherence: Quantum states are really sensitive and can be easily messed up by things like radiation. To build quantum computers, one needs to create protective structures that help keep the qubits’ quantum states stable for a longer period of time.
The outlook is to scale up the Quantum Processor to many devices as we head into a world that is growing more digital overtime. Many see Quantum Computer as a valuable resource to grow the development of Artificial Intelligence across the community but its effects could slowly creep its way to the DeFI Space. In the DeFI Space where the Mining and Validation Process requires plenty of computing power, Quantum Computing could be the next breakthrough!
Can it really take over the DeFI Space?
The Scale of Quantum Computing presents a huge conflict between it and the Blockchain Technology, the main fundamental behind the DeFI Space. The main concern is that Quantum Computing could disrupt the ability of the Blockchain System from not only the mner’s perspective but also from the security aspect. The main idea behind the DeFI Space is its ability to securely process financial transactions without intermediaries, the network encrypt data and break it down for security.
Quantum Computing has the ability to break this encryption which might put the whole Decentralized Network in jeopardy. The DeFI Space could be vulnerable to quantum attacks because of the immense computational power of quantum algorithms that could process many permutations and guess the Public-key cryptography. The security mismatch is a big problem, highlighting the need for robust quantum-resistant cryptographic solutions to protect digital assets in today’s changing landscape.
Another cause of concern is its possibility to disrupt the idea of Decentralized Network into a Centralized space. The user of Quantum Computers could outperform plenty of validators and miners within the network while simultaneously taking control of the network. With the block reward for Bitcoin and Ethereum Network becoming more favorable overtime, Quantum Computing could undermine the Decentralized Nature of Blockchain.
Lastly is the conflict of interest between the transparency of the blockchain system and the perfect secrecy of quantum which then creates a technological showdown between two revolutionary inventions. Obviously we are still in the early days of this technology taking shape and its outlook may vary as more regulations are introduced but just like every revolutionary technology that is introduced, we need to nurture it for our advancement. Overall these are exciting times for the DeFI Space ahead!
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