Cryptocurrency Falls Short at RSAC Cryptographers’ Panel

An influential figure in the field of cryptography has recently criticized cryptocurrencies for failing to meet their initial promises. Adi Shamir, one of the co-inventors of the RSA cryptosystem, expressed his concerns during the Cryptographers’ Panel at the RSAC Conference in San Francisco.

Shamir stated, “In my opinion, the world would be better off without cryptocurrencies.” This sentiment arose during discussions about the implications of cryptocurrencies, which included efforts to secure artificial intelligence and the potential threats posed by quantum computing. Panelist Ed Felten, chief scientist at Offchain Labs, echoed Shamir’s skepticism by comparing the current cryptocurrency landscape to the nascent internet, noting both promising and dangerous activities within the space.

Evaluating Cryptocurrency Limitations

Shamir highlighted that cryptocurrencies were intended to facilitate anonymous transactions without oversight, but he criticized their current state. He argued that the market has become heavily centralized, primarily revolving around a few large exchanges. Instead of being used for daily transactions, cryptocurrencies are frequently treated as speculative assets, leading to concerns about their utility. Additionally, their role in cybercrime has expanded, as attackers now often use cryptocurrencies for ransom payments.

Addressing Quantum Computing Concerns

The conversation then shifted to quantum computing, moderated by Tal Rabin, a senior principal applied scientist at Amazon Web Services. Perspectives on when practical quantum computers will be realized vary significantly, with some suggesting imminent capabilities and others far-distant possibilities. Raluca Ada Popa from UC Berkeley and Google DeepMind noted a concerning trend: intelligence agencies may be intercepting encrypted data now, anticipating future capabilities to decrypt it later.

Whitfield Diffie, a pioneer in public-key cryptography, emphasized the dangers of this “collect now, exploit later” strategy while also highlighting the progress made by the U.S. National Institute of Standards and Technology in establishing post-quantum algorithms. Vinod Vaikuntanathan from MIT advocated for a conservative approach, recommending hybrid encryption to bolster security. Such methods involve encrypting data using both classical systems like RSA and quantum-resistant algorithms to offer robust protection.

Adapting Blockchain Systems for Quantum Resilience

Felten underscored that the blockchain sector too must transition to quantum-resistant algorithms. While current systems primarily rely on digital signatures for integrity, the consensus-driven nature of blockchains presents unique challenges for implementing widespread changes. To transition to quantum-safe cryptography, systems might require a temporary suspension of operations to avoid potential vulnerabilities. This could involve freezing funds and encouraging active user participation to update their signing keys.

The discourse at the panel reinforced significant insights into the risks and evolving technologies that impact both cryptocurrency and broader cybersecurity frameworks. As stakeholders navigate these intricate topics, the emphasis on preparation and adaptation remains paramount in mitigating future cybersecurity threats.