Efe Anidi

Adventures In Information Technology

Tag: Bitcoin

Fujitsu Quantum Computer Set to Crack Bitcoin in 2023?

October 17, 2022 /

Japanese technology multinationals Fujitsu and Riken Research Institute are anticipated to release a potential Bitcoin-defeating quantum computer to businesses in 2023. The computer, which is considerably more potent than Frontier, the fastest supercomputer in the world created by Hewlett-Packard, is anticipated to be initially used for financial forecasting and the development of new pharmaceuticals. The new computer from Fujitsu will make use of so-called superconductor materials, which, when chilled to a temperature close to “absolute zero,” exhibit zero electrical resistance.

A 2022 academic article from Sussex University and the peer-to-peer exchange LocalBitcoins have both issued warnings that quantum computers may be able to defeat the SHA256 algorithm employed by the Bitcoin network.

Unlike Cardano or Ethereum since the merge, in a proof-of-work blockchain system like Bitcoin, miners compete to find a numerical answer to the SHA256 algorithm that surpasses the difficulty, or network goal. The header of a block of Bitcoin transactions and a random number are subjected to so-called hashing operations by miners. Using the SHA256 technique, a certain pattern-following numerical solution can be attained. Often, the miner must complete quadrillions of “hashing” operations per second before he or she can accurately predict the answer. An Application-Specific Integrated Circuit is the preferred type of computer for hashing in the Bitcoin mining process (ASIC). The Bitcoin network’s security, which has been largely impenetrable up until now, is aided by the mathematical complexity of finding the solution. Without it, the network’s security might be compromised.

This innovation by Fujitsu could potentially and easily crack the SHA256 algorithm. That news, alongside the announcement from the Michelle Simmons-led Silicon Quantum Computing, which has designed the world’s first integrated circuit computer created at an atomic scale, means the race for quantum supremacy is heating up. Will a quantum computer crack bitcoin in 2023? Only time will tell. Stay tuned to this blog for updates.

Read more at Riken Research here

Check out Silicon Quantum Computing here

What is Blockchain Technology, Blockchain for Beginners

August 3, 2022 /

Blockchain is a revolutionary technology that is redefining how we exchange goods and services. It’s changing industries from banking to healthcare, from real estate to politics. A Blockchain is a decentralized and distributed ledger that is being used for a wide variety of commercial and personal applications. The technology is so disruptive, in fact, that it’s creating a new class of companies that are moving from the traditional to the decentralized. In this article, we will explore the basics of blockchain in order to help you understand how the technology works and where it can be implemented.

What is Blockchain Technology?

Blockchain technology is a digital ledger that is distributed across a network of computers on the internet. The blockchain is a public ledger that records transactions, such as digital currency (Bitcoin), cryptocurrency, and property transactions. It is a decentralized digital ledger that is encrypted, meaning it is a secure and tamper-proof way to store digital records. Blockchain technology was first introduced in 2008, and it is the underlying technology behind Bitcoin and other cryptocurrencies like Ethereum. The blockchain is an open, distributed, and decentralized ledger that can record transactions between two parties efficiently and in a verifiable and permanent way. Blockchain technology is a recent invention and is still in its early stages of development.

How Blockchain Works

A blockchain is a type of database that is distributed across multiple computers. The blockchain is used to record transactions between two parties efficiently and in a verifiable and permanent way. Each block in the blockchain contains a timestamp and a link to a previous block. By design, blockchains are resistant to modification of the data. With the help of a cryptographic hash function, the data is stored in a way that makes tampering difficult. Each block in the blockchain is assigned a unique number. This helps the blockchain to be transparent about its data.

The History of Blockchain

Blockchain technology was first introduced in 2008 by Satoshi Nakamoto. It has been used for the past decade to keep track of transactions of Bitcoin. The information is stored in a public ledger that is shared by all the computers on the network. Blockchain technology came into the spotlight in 2017. It was also the year that Bitcoin came into the greater public as an alternative to gold for some early investors. In 2021 a British court settled a claim that Craig wright was the inventor of Bitcoin although many people still refute that he is Satoshi Nakamoto.   

Where Can Blockchain be Used?

Where can blockchain be used? Blockchain is used in a number of different industries, such as finance, healthcare, and education sectors. It is also used in the creation of cryptocurrencies. Blockchain is also now gaining momentum as an entertainment technology with the boom of NFTs (Non-Fungible Tokens) which also use blockchains and decentralised ledger technology.  

FCA advising a limit on cryptocurrency holdings.

August 2, 2022 /

Consumers should be warned that they could lose all their money if they invest in crypto assets, the FCA warned on Monday. As it prepares to extend its powers to cover digital assets, including cryptocurrencies, the financial-services regulator said it will ban bonuses for referring friends.

Rishi Sunak, then the country’s finance minister, announced that the country aimed to become a crypto assets hub in April. As a result of the recent market crash, which saw the price of bitcoin (BTC) fall and assets like the terraUSD (UST) algorithmic stablecoin and hedge fund Three Arrows Capital collapse, the regulator is more determined than ever to enforce its regulations.

Although it lacks current powers to directly regulate the market, the FCA still considers crypto assets to be high risk when used as speculative investments.

Warning

Under the plans, potential crypto buyers must be given a “clearer and more prominent” warning that they could lose all their money and won’t be protected if something goes wrong. While the new rules in principle apply only to risky non-crypto products, the FCA is waiting for lawmakers to pass promised legislation that would extend them to innovative digital assets.

The regulator has tentatively said crypto would fall under an intermediate category of “restricted mass-market investments.” Marketing to retail investors wouldn’t be banned, but there are more limits than would apply to assets deemed safer, such as listed stocks.

Qualifying crypto assets “are only likely to be appropriate for consumers as a small part of a diversified portfolio,” and “should only be accessed when consumers understand the risks involved,” the document said, adding that exposure should be limited to 10% of net assets.

Sunak resigned in July, and is now vying with Foreign Secretary Liz Truss to succeed Boris Johnson as prime minister.

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