From cointelegraph by Andrew Singer

A report that Chinese researchers have employed a D-Wave quantum computer to breach encryption algorithms used to secure bank accounts, top-secret military data and crypto wallets is, at first glance, a matter of deep concern. 

“This is the first time that a real quantum computer has posed a real and substantial threat to multiple full-scale SPN [substitution-permutation network] structured algorithms in use today,” wrote Shanghai University scientists in a peer-reviewed paper, according to an Oct. 11 report in the South China Morning Post (SCMP).

The paper talks about breaking RSA (Rivest-Shamir-Adleman) encryption, one of the oldest and most widely used public-key cryptosystems.

Details about the latest research have been slow to emerge, so it’s difficult to say for sure how dire the threat is to cryptocurrencies and blockchain technology. The paper had yet to be released in English as of Oct. 11, and researchers weren’t taking any interviews, supposedly “due to the sensitivity of the topic,” according to SCMP.

But if the researchers’ results hold up and can be duplicated by others, “it is a step forward” in the evolution of quantum computing, Marek Narozniak, a physicist with a background in quantum computing and the founder of Sqrtxx.com, told Cointelegraph.

Would it mean that the password-protection mechanisms used in many industries, including banking and cryptocurrencies, might soon be vulnerable, as many fear?

“From the paper, many details are missing, so it is difficult to provide a definite answer” with regard to its possible significance, Massimiliano Sala, a full professor and the head of the Laboratory of Cryptography at the University of Trento, told Cointelegraph.

Much depends on whether the scientists were able to break RSA keys of a certain size — i.e., keys as large as those used by banks to secure customers’ savings and checking accounts today. “There is no evidence of that,” said Sala.

But if they had, it would be “huge,” he said.

Quantum computing (QC), which uses atomic “spin” instead of an electrical charge to represent its binary 1s and 0s, is evolving at an exponential rate, many say. But full purpose QC devices have yet to emerge at scale.

The D-Wave machines used in Shanghai, sometimes called quantum annealers, are really proto-quantum computers, or forerunners, capable of conducting specialized tasks only.