Quantum Threat Looms: Will Zcash Overtake Bitcoin?

The security of Bitcoin's network is under threat from quantum computing, which could crack its encryption in as little as five years. The cryptocurrency's creator, Satoshi Nakamoto, has a stash of about 1.1 million BTC that have never been touched or moved, but freezing those coins would break the chain's promise of property rights.

Bitcoin Improvement Proposal (BIP) 361 is being evaluated to fortify the network against quantum computers, but it won't be implemented until 2027 and will take five years to complete. Meanwhile, Zcash and Ethereum are working on post-quantum cryptography that isn't vulnerable to quantum attacks.

Zcash has already discussed transitioning to new post-quantum cryptography and has a recent track record of responding quickly to security problems. The head of the Zcash Open Development Lab (ZODL) expects it to reach full post-quantum operational status within 12 to 18 months, in contrast to Ethereum's target of December 2029.

If a confirmed quantum computing codebreaking attack happens during this long process, it would punish Bitcoin's price. And if there were another blockchain that managed to become quantum secure much sooner, it would be a logical place for the money fleeing Bitcoin to go. Zcash needs 64-fold growth to surpass Bitcoin, while Ethereum needs a 5.1-fold gain relative to Bitcoin.