I think the unsolved problem of phishing is more significant than quantum computing. We ourselves give our private key, not suspecting that they are attacking us.

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Perhaps the reason for the blockchain network congestion is not associated with a large number of people placing orders on a decentralized exchange, but with the problems of the blockchain technology itself. Specialists have long said that a fully decentralized technology works well, only with a small number of transactions per unit time. In any case, this problem is expected and regular; it seems to be called "scalability".

---------------------------------
And how can the government (or someone else) establish the ownership of bitcoin? Is your personal data recorded on the blockchain? What tools can be used against you?

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Absolutely correct behavior. Everything new must pass the test. Today, the verification of everything new must be very thorough, new quantum calculations have appeared. It is interesting to use this platform for communication for its intended purpose - for discussions, for the exchange of views. Therefore, I proposed a completely new and debatable topic. But at the moment, nobody wants to sort things out so far. Everyone is content with old technology and does not notice the rapidly changing security environment. The rise of cybercrime is phenomenal. All defenders work well after the crime, not before it. This is a disturbing fact.

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1) Imagine that we play chess. We transfer our moves - by telephone, through open communication, we hang on the bulletin board, it does not matter. Between ourselves, we agreed that the game of chess is a distracting maneuver. In fact, we need each chess move to indicate a specific chess piece. Each move is still needed to move a specific piece. We agreed, and temporarily, that each chess piece indicates is associated with specific information. Denotes a part of the information that needs to be “encrypted and transmitted”, for example, this is a byte of our information.

2) We transmit to each other only "service information", only a link from which cell the figure should be taken and in which cell the figure should be placed. It’s just a chess move of some kind. All pieces are randomly located on the board, unknown how, for an external observer. Let in our chess, all pieces are allowed all moves, without discrimination.

3) I pass the move on my board: A5 to B2, but I do not indicate a piece, and only on the board of my partner it is clear that this is a “black elephant”. The "Black Elephant", by default, temporarily, for this communication session or for this data packet, is associated with some kind of information byte. Therefore, transmitting the digitized code of the move - I transmit the link, a vector defined unambiguously only in the reference frame selected for this data packet.

4) Note that the reference point - we can also change. The coordinate system and the starting point of reference can be like at any of the 4 corners of the chessboard (as it usually is), inside the chessboard, outside the chessboard. From choosing this parameter - the digital code of the chess code - will change. In any case, this is another uncertainty that is very relevant in cryptography.

5) This chess move, this link in this space, this vector, I additionally encode. I encrypt as good as I can. I have many more rounds of encryption, the last of which is the XOR operation with a one-time binary tape, its length is exactly equal to the length of the link cipher. This is the Vernam cipher class, with the only difference being that our one-time binary tape is never transmitted from me to my partner. Therefore, the final cipher is not vulnerable, persistent in the absolute sense of the word (K. Shannon theorem, proved in 1945).

6) In fact, I only encrypt the link, nothing meaningful information for the external observer, even if he decrypts it. Because he does not see the chess game, he does not see which piece this link indicated. A figure is information that I “transmit and encrypt” at this point in time.

7) Why then additional rounds of encryption? To encrypt information - they are not needed. And to prevent cryptanalysis using the Chosen-plaintext attack (CPA) method, for very large amounts of cipher, they will not hurt.

In such a system, the private key must be stored only on paper. Exclusively. All modern digital storages - only seem reliable. And this illusion only works until the time that professionals are interested in you.

These are not just fears, nothing is more serious than threats of cyber fraud. The facts speak for themselves:
"According to CipherTrace, this year's total losses from theft of cryptocurrencies and other types of fraud amounted to 4.4 billion U.S. dollars."

The number of bitcoins lost due to the loss of keys or the death of the key keeper is huge and is growing every year. The theft of our confidential information, passwords - is growing.
I get new confirmations of my position that new passwordless and keyless systems will be in demand.
Quantum attacks are already possible, and quantum robust algorithms have not yet been determined. In addition to symmetric systems. But no symmetric encryption system without asymmetric will work.
So far, this problem remains without a visible solution.

The number of bitcoins lost due to the loss of keys or the death of the key keeper is huge and is growing every year. The theft of our confidential information, passwords - is growing. I get new confirmations of my position that new passwordless and keyless systems will be in demand. Here is a fresh example.
Positive Technologies experts summed up the results of the third quarter of 2019. Every fifth attack was directed against individuals, with almost half (47%) of all data stolen from them - these are credentials in various systems (logins and passwords). For example, the Clipsa Trojan is able to covertly “mine” cryptocurrency, steal passwords, change the addresses of crypto-wallets, and also launch brute force attacks against WordPress-based sites.

Cryptography after the Aliens Land, Bruce Schneier, IEEE Security & Privacy, September/October 2018.
Read at least the beginning of the article, it was written by all recognized genius in cryptography! I had the honor of being in correspondence with this person; he allowed me to use his quotes. This is a formality, but a fact. The fact that modern cryptography has a lot of problems is not my thoughts. Think carefully about what is written in this article.
https://www.schneier.com/essays/archives/2018/09/cryptography_after_t.html

-----------------------------
Those who have a quantum computer can hack you. And not necessarily brute force attack, as everyone writes about it. There is a mathematical apparatus known only to cryptanalysts, which reduces the time of hacking by a huge number of times, relative to brute force attacks. If you plan to defend yourself with quantum cryptography, then you need to have a quantum computer for encryption. Read which systems claim, see what kind of resource they need, see what size keys they need to work, and it will become clear to you that your equipment is not suitable for these tasks. I think the problem is much more serious than it seems if you delve into the realities of today. A quantum computer attacks you, and you plan to defend yourself with old iron. The forces are not equal!

The following problems are observed in modern cryptography:

1) The limited number of working schemes [1], for public-key cryptography;

2) “Lack of prospects” [2] due to the development of new types of attacks and efficient computational processes (quantum computing), which means the future of cryptography in its modern form is very vague.

3) Potential unreliability of the basis [3]. Within the framework of the theory of computational complexity, the connection between complexly computable problems and their analogues has already been proved. This means that if it is hacked, at least one modern cryptosystem, many others also will not stand;

4) Constant "inflation" of the size of data blocks and keys [4], due to the progress of mathematics and computing. So, if at the time of creating the RSA cryptosystem, the size of numbers in 512 bits was considered sufficient, now at least 4 Kbits is recommended. Cryptographers find new tricks all the time, so we tend to use keys longer than is strictly necessary. Much less, but true for symmetric encryption algorithms;

5) The ability to quickly search will break some of the modern encryption algorithms. A light factorization of large numbers will break the RSA cryptosystem with any key length [5];

6) In essence, modern cryptography relies on the mathematical quirk that some things are easier to do than to cancel.

“Perhaps the whole idea of cryptography is based on number theory [6], as modern public key systems are a temporary phenomenon that exists due to gaps in the computation model” - Bruce Schneier.

So what do we have?
A temporary phenomenon that we trust?
Is there a way to gradual evolution or do you need a “knight's move”?

And one more quotation, like a flashlight, highlights the high probability of a dead-end path for the development of modern cryptography, and again Bruce Schneier: “... Yes, I know that the distribution of quantum keys is a potential replacement for public-key cryptography. But let's be honest: does anyone even believe that a system that requires specialized communication equipment and cables will be used for anything other than niche applications? The future is mobile, constantly powered computing devices. All security systems for them will be only software [7]. "

Bruce Schneier:
This is a strange future. Perhaps the whole idea of cryptography on number theory, like modern public key systems, is a temporary phenomenon that exists due to gaps in the computational model. Now that the model has expanded to include quantum computing, we can be where we were in the late 1970s and early 1980s: symmetric cryptography, cryptography based on codes, Merkle's signatures. It will be funny and ironic.

Opinions on the dangers of quantum computing were divided. Let's see what experts, recognized cryptography geniuses think about this, and not ordinary bitcoin owners. Let's get started.

Today, even a poorly trained user can do a phishing attack. There are ready-made programs for this. Everyone needs to know about this.

Here's a nasty fresh example of how they might attack us:

Large online services use two-factor authentication (2FA) to protect accounts. Usually its implementation comes down to the fact that in addition to the login and password, you must enter a one-time code sent in SMS or push-notification to the mobile number specified during registration. Until recently, 2FA was considered a relatively reliable anti-theft system, but now there are already ready-made tools that make it easy to overcome it.
One of them is Evilginx 2, which we will talk about. This is a reverse proxy server and a ready-made framework for performing a MITM attack to bypass two-factor authentication. Everything that is possible is automated in it.
Evilginx 2 has the super ability to create a signed certificate for a fake site using the client’s free and fully automated Let’s Encrypt Certification Authority. This helps the attacker to use HTTPS and decorate the phishing site with a green lock in the address bar. As a result, the fake is visually indistinguishable from the original. Plus, Evilginx 2 independently detects and intercepts valid cookies, and this is the main component of a successful hack.

We are used to the fact that all hacker tools are written for Linux, however Evilginx 2 is available both on Windows and as a Docker container.

__________________
I am not an expert in this matter. But they write this: “Interesting information was announced in Lisbon in the July Building-on-Bitcoin conference by the famous bitcoin developer Jameson Loppe. He said that during the existence of the distributed BTC registry, about 6 million bitcoins were stolen and lost due to the loss of keys. . " As we can see, the owner’s secret keys are always under attack by a hacker.

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Example 1. In July 2017, the developers of Parity, the Ethereum cryptocurrency wallet, faced theft. Unknown attackers took advantage of the bug in the multi-signature contract, which allowed them to steal funds from other people's wallets.

As a result, all users who deal with multi-signature wallets created earlier on July 19, 2017 were affected. In the pockets of criminals settled 153 thousand ETH, that is, about $ 30 million at the current rate.

Hacking occurs through the spread of viruses. Such viruses can be divided into two types.

The first is hidden miners. They infect the system and start mining crypts on the infected computer without the knowledge of the computer owner and in the interests of the virus owner.

The second is stylers. They steal wallets passwords and wallets themselves. The stylers can also include primitive viruses, which replace the sender address on the clipboard.

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Example 2. Old proven phishing.

At the end of September 2017, cyber police together with employees of the Talos division of Cisco launched an investigation into one of the largest phishing campaigns aimed at cryptocurrency users (Coinhoarder operation).


According to the press service of the cyber police, a large number of domains have been discovered, the names of which are similar to the original resource of the online service of virtual Bitcoin-wallets: blockchain.info.

Eight dozens of phishing blockchain sites are already known. Victims were lured to them through Google Adwords advertising campaigns.

When the keyword “blockchain” was introduced on Google, a link appeared that looked legitimate. However, after clicking on this link the user was taken to a fake domain (similar to bockchain.info). The domain looked similar to the original, but had a different domain name and a specially designed script from attackers.

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---------------------------
As for the use of keyless technologies in cryptocurrency wallets, such projects are still possible, theoretically. Here is an example:
https://toxic.chat/

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In addition to the benefits for the user, because you can not steal the key, there are advantages for the blockchain itself, in general.

Here are the three principles of this keyless technology, built on geometry, not mathematics:

1) a chain of state sequences;
2) the presence of all links of the chain (blocks)
3) the absolute dependence of each new link (state of space) on all the information used for the exchange

- correspond to the definition of the classic “blockchain”: “a continuous sequential chain of blocks built up according to certain rules (linked list)”, with the important difference that there are no blocks as such, they all correspond to existing system states that need not be saved (unlike blocks).


--------------------------------------------------
   classic blockchain      alternative blockchain
1) No parallelization, no synergy, no mutual assistance - only duplication, and immediately (continuously) million times/
1)   Copying or partial copying, distribution of parts of the system between any number of users, node or super nods, central server - no restrictions, the weight of the system does not change as many times as its direct and continuous use

2) All blocks are linked by a cryptographic signature in chronological order in a single chain, complex mathematical algorithms are responsible for this   
2) All blocks (states) are linked by an analogue of a cryptographic signature (the Vernam cipher level), not complex algorithms are responsible for this.

3) Attempting to integrate current payment networks into a blockchain can be so complex that no one will even try to go this way.   
3)The problem of overloading computing power and existing networks is absent due to the complete lack of scalability in this technology.

4) Currently, there are more than 1,400 digital coins, many of which have their own versions of the blockchain, each with its own “+” and “-”   
4) It makes no sense to create such a number of technology options in the case of its use in cryptocurrencies, since The technology is free from the main disadvantages of any variant of the classic blockchain.

5) To prevent an attack, you need to use complex security keys and two-factor authentication, there is a "human factor".   Each data packet not only carries information, but also performs (as a 100% hash) the verification function of each previously received and current data packet, there is no “human factor”
In the current reality, the blockchain's “eternity” is limited to a dozen years - the increase in the capacity of hard drives definitely does not keep pace with the growth in blockchain volume   
5) The system does not scale to any bit depending on any number of transactions, but increases when a new unit appears

6) Very low speed of operations, hung stocks, miners are combined into pools - the problem of 51% is becoming more urgent   
6) The speed of operations depends only on the number of nodes, there is no problem confirming all the “blocks”, a very high and stable performance

---

Phishing is possible only if you have a persistent identifier. In addition, the server checks you, and you are the server? In keyless encryption technology in the client-server model, phishing is not possible because your identifier is always variable. And the check goes in both directions. This makes the transmission and reception protocol of the encryption system itself. If this were not so, then the encryption scheme would be either constant or predictable. This would be an ordinary cryptographic keyless primitive, of which there are a lot, they are called unidirectional functions and so on.

---

Here is an example of how phishing works on the blockchain:
"As soon as the user entered the wallet, or created a new one, Nginx replaced it with his own on the fake server. Criminals accessed information from the graph sharedkey, password, secondPassword, isDoubleEncrypted, pbkdf2_iterations, accounts."

And further:
"According to information from security specialists at blockchain.info, this phishing campaign is one of the largest in history ..."

Moreover:
"The experts also found confirmation that these attackers were involved in the creation of several so-called HYIP projects, such as: flexibit.bz, verumbtc.com, hashminers.biz.

Cisco researchers said fraudsters earned $ 50 million in cryptocurrency over the past three years. It's about losing users all over the world. "

What other examples are needed to understand that key technologies are very dangerous.

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Today, even a poorly trained user can do a phishing attack. There are ready-made programs for this. Everyone needs to know about this.

Here's a nasty fresh example of how they might attack us:

Large online services use two-factor authentication (2FA) to protect accounts. Usually its implementation comes down to the fact that in addition to the login and password, you must enter a one-time code sent in SMS or push-notification to the mobile number specified during registration. Until recently, 2FA was considered a relatively reliable anti-theft system, but now there are already ready-made tools that make it easy to overcome it.
One of them is Evilginx 2, which we will talk about. This is a reverse proxy server and a ready-made framework for performing a MITM attack to bypass two-factor authentication. Everything that is possible is automated in it.
Evilginx 2 has the super ability to create a signed certificate for a fake site using the client’s free and fully automated Let’s Encrypt Certification Authority. This helps the attacker to use HTTPS and decorate the phishing site with a green lock in the address bar. As a result, the fake is visually indistinguishable from the original. Plus, Evilginx 2 independently detects and intercepts valid cookies, and this is the main component of a successful hack.

We are used to the fact that all hacker tools are written for Linux, however Evilginx 2 is available both on Windows and as a Docker container.

---

South Korea’s largest cryptocurrency exchange, Upbit, has notified its users of the theft of tens of millions of dollars in cryptocurrency from its wallet.

According to Lee Seok-Wu, the head of the Dunamu managing company exchange, on Wednesday, November 27, at 13:06 from the “hot” Ethereum wallet Upbit 342 thousand ETH (about $ 50 million) were transferred to an unknown wallet (0xa09871AEadF4994Ca12f5c0b6056BBd1d343c029)

---

The number of bitcoins lost due to the loss of keys or the death of the key keeper is huge and is growing every year. The theft of our confidential information, passwords - is growing. I get new confirmations of my position that new passwordless and keyless systems will be in demand. Here is a fresh example.
Positive Technologies experts summed up the results of the third quarter of 2019. Every fifth attack was directed against individuals, with almost half (47%) of all data stolen from them - these are credentials in various systems (logins and passwords). For example, the Clipsa Trojan is able to covertly “mine” cryptocurrency, steal passwords, change the addresses of crypto-wallets, and also launch brute force attacks against WordPress-based sites.

____________________________
No, the key cannot be stolen. The key cannot be stolen here, since it as a function is absent. Moreover, there is no single encryption scheme, how can one have a key? He’s useless; there’s nothing to steal. This is the trick. There is one of many encryption schemes. There are eight independent rounds of encryption. All of them have a large number of their encryption schemes. All of them are in a geometric space with a function of time as we are used to and with a function of time internal, unusual and working according to its own laws. Taken together, this is a space-time continuum, virtual of course. Such a system works according to the principle: you cannot enter the same river twice. The river is always different. In this technology, even the information itself is not encoded. Encoded links inside the space pointing to the elements of the space. Elements of space are always moving. Like cars in the city. The starting point of the reference system for the link is also always moving. All information is divided into parts (for example, 8 bits), then we need 256 machines to match all the options. All 256 cars move around the city, the street map of which is always a variable unknown to the outside observer. The location of each car is unpredictable, they are always in motion, and traffic without city traffic jams. Our starting point is a drone flying in the sky of a city. The drone is always moving. If we need to transfer any version of 8 bits, we need to draw a vector (link) from that drone to that car. This car, at a given time (this is also a variable), is located at some point in the city. Predicting a vector (link) to an external observer is not possible. The vector is digitized, and this is only the first 2 rounds of encryption. It is encoded further. As a result, only the vector (link) code is transmitted to the communication channel. Decode it - without meaning and without benefit. It does not contain our information. In the same way as in itself the Internet link, link does not contain information. These are the basics of keyless geometric vector systems.

Today, to all the security problems of cryptocurrency as such, the problem of cryptography is added, and this is the basis of cryptocurrency.
And after that, the value of this information will be clear:
Quantum Supremacy Using a Programmable Superconducting Processor
Wednesday, October 23, 2019
Posted by John Martinis, Chief Scientist Quantum Hardware and Sergio Boixo, Chief Scientist Quantum Computing Theory, Google AI Quantum
https://ai.googleblog.com/2019/10/quantum-supremacy-using-programmable.html
------------------
Cryptography after the Aliens Land, Bruce Schneier, IEEE Security & Privacy, September/October 2018.
Read at least the beginning of the article, it was written by all recognized genius in cryptography! I had the honor of being in correspondence with this person; he allowed me to use his quotes. This is a formality, but a fact. The fact that modern cryptography has a lot of problems is not my thoughts. Think carefully about what is written in this article.
https://www.schneier.com/essays/archives/2018/09/cryptography_after_t.html

“In order to access all your emails, you only need one SMS message,” the experts emphasize. Billions of Android device users are at risk of cyberattacks, Check Point experts warn. Using just one phishing SMS message, an attacker can trick a user into changing the critical network settings of a device and stealing his data. According to Check Point experts, some manufacturers of mobile devices, including Samsung, Huawei, LG, and Sony, use OMA CP with insufficient authentication, which can be used by cybercriminals. A remote attacker is able to trick a user into updating the settings of his device using a malicious proxy. Thus, he will be able to intercept a network connection, including browsers and built-in email clients. 
https://research.checkpoint.com/2019/advanced-sms-phishing-attacks-against-modern-android-based-smartphones/

You write: "EG if you have the only house key only you can unlock the door. But if there are 100,000 housekeys that can fit the door. Then it becomes much easier." It's the opposite here. There are 100,000 housekeepers, each has a key. And the lock in the door at one time is configured only for one housekeeper. At the next point in time - at a randomly selected out of 100,000. This is a different principle. In fact, this number 2 was raised to the 304th degree. It's a minimum. Because the system has the ability to work with data packets of different sizes. For one package, this is 2 to 304 degrees. And for 2 already: 2 to 608 degrees. Feel the difference. In a symmetric system with a 256-bit key, it is always 256-bit. As soon as you guess the key, the system will fly. In our system, guessing one option for one data packet does not give you anything useful. Because the next option has no correlations with the previous one, a priori.

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----------------------
Symmetric systems without asymmetric ones will not work, no one will meet and pass each other a key for encryption. You know that asymmetric encryption systems are conditionally reliable. So, now, they use keys of 4 kilobits in size. You also know that a 256-bit symmetric system key is equal in reliability to a 15,300-bit asymmetric system key. It is not possible to use such a key on modern technology, because it will require huge computing resources, and our smartphones do not have them. And there are also cryptanalysts. No military organization ever uses a public-private key pair. Think about why. Moreover. This year, the era of quantum computers has begun, which we all can use over the network. A 53-qubit computer did calculations in 200 seconds that a regular computer would do 10,000 years. Read the news. All asymmetric cryptography is already in the past, not only for special services, but even for ordinary hackers. The American Standards Institute is looking for post-quantum asymmetric systems. While there are 4 candidates from asymmetric systems and 1 candidate from symmetric ones. But every asymmetric candidate consumes a lot of resources. How will a symmetric system work without an asymmetric one? No way. This is in theory only possible. But not to us.

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This is a very interesting development. It’s a pity that she is classified. However, there is an assumption that this is an analog of modern keyless primitives, such as for example, hash functions. In other words, sometimes, a system with one secret key is called a keyless one. In a sense, this is so. After all, the key is not transmitted, you do not need to do this. But such systems are fundamentally different from systems with a variable encryption scheme when each new data packet has its own set of encryption and decryption rules.

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Cryptography after the Aliens Land, Bruce Schneier, IEEE Security & Privacy, September/October 2018.
Read at least the beginning of the article, it was written by all recognized genius in cryptography! I had the honor of being in correspondence with this person; he allowed me to use his quotes. This is a formality, but a fact. The fact that modern cryptography has a lot of problems is not my thoughts. Think carefully about what is written in this article.
https://www.schneier.com/essays/archives/2018/09/cryptography_after_t.html

---

And after that, the value of this information will be clear:
Quantum Supremacy Using a Programmable Superconducting Processor
Wednesday, October 23, 2019
Posted by John Martinis, Chief Scientist Quantum Hardware and Sergio Boixo, Chief Scientist Quantum Computing Theory, Google AI Quantum
https://ai.googleblog.com/2019/10/quantum-supremacy-using-programmable.html

All you say is right. These are excellent cryptographic solutions. If it weren't for the danger of stealing the key, phishing or other problems with key-type systems. If you use keyless cryptography, you get the following benefits: 1. you have nothing to steal. 2. the durability of the encryption is not based on the durability of the key (Auguste Kerckhoffs principle). 3. Absolute integrity of all messages at the level of 1 bit of information. 4. Absolutely impossible to modify this cipher. 5. as a bonus - password-free authentication based on variable numeric identifiers. 6. authentication in both directions and for this reason the impossibility of phishing. 7. other things that are is too early to talk about before all the issues have been analyzed.

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-----------
This will be clear when all the principles of this technology are shown. I will write them in order, observe how they are perceived by readers, and then write further. Very briefly, but not very precisely, it can be explained this way. Each next data packet has its own encryption scheme and it has a decryption scheme.  Both systems are completely symmetrical. But their settings always change. The scheme is in a static state, it does not change, only when one data package is prepared. Once it is prepared, it changes to a completely new one. This is a property where both systems are always in the same state for only one data packet - called a logical time tunnel. They are absolutely deterministic. But they are absolutely movable. Yes, and most importantly, the mathematical principles of coding in such a system will be very cumbersome and predictable. We have conducted research that has shown that geometric models are ideal for such a paradigm, simple and without recognition complexes. But it's not difficult to explain it all on the example of a chess game. If there's anyone else's interest.

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Spiritual Factor Authentication (2fa) may not always enhance your security. To date, this may be a weakening of your security. It is very successfully bypassed because there are attacks on SIM cards. The news. Twitter allows you to disable two-factor authentication via SMS. 07:54 / 22 November 2019
"Twitter is two-factor authentication."
The ability to disable two-factor SMS authentication was added to protect against SIM swap attacks.