Google's Willow and the Crypto Crash: What Happened?
The crypto market was shaken up again this week by an unexpected announcement from Google.
What Happened?
Google introduced its new quantum processor Willow, which made a breakthrough in quantum computing. This caused a drop in cryptocurrency prices:
- Bitcoin fell to $94.5k (-3.5%),
- Ethereum — to $3.5k (-7.9%),
- Solana — to $205 (-8.4%).
What is Willow?
Wilow is the basis of a quantum computer that uses the principles of quantum physics to process data super-fast. For example, it solved a problem that took longer than the existence of the universe in 5 minutes.
Advantages of quantum technologies:
- Climate forecasts: more accurate weather modeling.
- Drug development: creating new drugs through the simulation of complex molecules.
- Optimization: improving logistics, traffic management and financial models.
However, there are risks:
Quantum computers can hack modern cryptographic mechanisms that blockchains are based on. This makes assets such as BTC, ETH, SOL potentially vulnerable. Other areas are also at risk: banks, e-commerce, government data.
Should we panic?
Not yet. Modern quantum computers are not yet able to hack blockchains. However, progress is accelerating: threat forecasts have been reduced from 15-20 years to shorter terms.
Work on creating quantum-resistant blockchains is already underway, and leading networks will probably adapt to new challenges by 2030.
At the moment, this is more like another FUD that will soon be forgotten. Similar news appears almost every year, and it should be taken calmly.
