The post-quantum shift could slow crypto by 10x according to Hoskinson

Charles Hoskinson, founder of Cardano, sounds the alarm on rushing into post-quantum cryptography adoption. According to him, blockchains will have to accept major compromises to defend against future quantum computers. But when will this threat really become critical?

Solutions exist, but at what cost?

Charles Hoskinson has just broken a persistent illusion in the crypto ecosystem. Yes, post-quantum cryptography exists. No, it is not ready for massive deployment without consequences. The founder of Cardano points to a crucial timing problem: acting too early could paralyze blockchain networks.

The figures he presents are dizzying. “Post-quantum cryptography is often about 10 times slower, proofs are 10 times larger, and it is 10 times less efficient“, he explains.

Concretely, adopting these new protocols would mean dividing blockchain throughput by ten. A disappointing prospect for networks already facing scalability challenges.

The U.S. National Institute of Standards and Technology (NIST) published post-quantum standards as early as 2024. The problem therefore does not lie in the absence of technical solutions, but in their implementation cost.

Miners and validators do not yet have the hardware necessary to compensate for this performance loss. Hoskinson thus advocates for a measured approach, refusing to give in to panic.

To assess the real risk, the founder of Cardano advises following DARPA’s flagship quantum computing initiative rather than tech companies’ marketing announcements. 

This U.S. agency has set 2033 as the target year to determine if industrial-scale quantum computing is viable. “It is the best independent and objective reference point“, asserts Hoskinson.

Two schools clash in crypto

The blockchain industry faces a major strategic dilemma. Two cryptographic approaches are vying for developers’ favor, and each camp defends its arguments with conviction. 

Ethereum has chosen STARKs and hash-based cryptography. Cardano, on the other hand, bets on network cryptography. Hoskinson compares the situation to the Blu-ray vs. HD DVD duel: “We will see which the market chooses.”

Hash-based cryptography is appealing for its simplicity and proven robustness. It relies on well-studied mathematical functions considered secure against future quantum attacks. Its main drawback? It excels for digital signatures but remains limited for general encryption.

Network cryptography offers more flexibility. It not only signs data but also enables encryption and advanced cryptographic tools. 

Hoskinson sees a considerable advantage here: the possibility of using standard graphics cards for cryptographic operations. “You can reuse hundreds of billions of dollars of supercomputers dedicated to AI“, he highlights. Goodbye to costly specific integrated circuits.

Faced with this uncertainty, Cardano adopts a pragmatic strategy. No radical protocol upheaval, but a gradual risk mitigation. 

The project notably explores creating post-quantum checkpoints of its blockchain history via systems like Mithril and the Midnight sidechain. A cautious approach acknowledging an unavoidable reality: “These systems always involve trade-offs“, concludes Hoskinson.

In short, the quantum threat looms over crypto, but rushing would be counterproductive. Between current performance and future security, the industry must navigate carefully. The coming decade will be decisive to determine which cryptographic approach will dominate the post-quantum era.