A China-based blockchain industry member recently reported that Huawei could be making forays in the blockchain market. Based on reports from the member by the name of Alice Crypto, Huawei might be making moves to get into the fast-emerging technology that had only just been created some years back. The news snippet was shared by the renowned content creator of Cryptocurrency, BoxMining.
During his speech in an event, a representative from Huawei had made the announcement. He had started their collaboration with Beijing’s government institutions on some blockchain applications. This roughly indicates that the reason for the blockchain partnership is mainly for data sharing.
The Reasons for this Surprise Collaboration
The data sharing is strictly the Beijing establishments for taxation, medical insurance, as well as every other local government establishment. Ultimately, the chain when established could support data transfer among the different regions in China. This is needed presumably so as to scale up efficiencies in law enforcement as well as logistical processes that rely on data.
Whereas, it is quite logical for one of China’s leading and most renowned companies collaboration with the government on popular technology. However, it is curious that this happens after the head of the company had previously been skeptical about cryptocurrencies and its accompanying technologies.
The threat to Crypto Technology
However, from a statement made by the CEO of Huawei, Ren Zhengfei, where he had stated the fact that quantum computers will actually kill cryptocurrencies.
In a recently published video snippet by Dovey Wan, Ren had said that quantum computing had posed a threat to cryptocurrencies. The quantum computer is a threat to the future of cryptocurrencies and its blockchain technology. Based on a report from Wan, a crypto venture capitalist, the Huawei leader had said that the blockchain is useless when pitched against quantum computing.
The published video was quite brief and it lasted for a period of 39 seconds. However, there is a big question about why the influential technologist is being skeptical about the nascent technology.
Typically, the blockchain technology had been widely accepted back in China. It is a country where the adoption of technology has been the trendiest fad. And why the CEO of such a big corporation would express some uncertainty about it leaves much to be desired.
How does Quantum Threaten Cryptocurrencies and the Blockchain?
Ethereum World News had already previously said this skepticism could be unfounded and baseless. This was further consolidated when Fortune wrote about the authenticity of the technology.
It had written to debunk the reports raised by the Huawei leader about the strength and authenticity of the technology behind cryptocurrency and its blockchain double data entry system.
Hence, Fortune had gone ahead and stated that the public-private key techniques of encryption that the technologies of both elements cannot be penetrated by the quantum computer.
Furthermore, he stated that Bitcoin will successfully adapt to this supposed threat from quantum computing. He also said that there is no verification if any establishment that has access to the technology could crack the secure hash algorithm code, SHA-256. He had stated that these establishments would much rather target high-profile organizations such as internet banking outfits as well as the global nuclear codes.