Mint Explainer: While banks strive for quantum attacks, India is moving too slowly?

Copyright © HT Digital Streams Limit all rights reserved. The inside of an IBM quantum computer. Photo; IBM summary Financial institutions worldwide quickly adopt quantum-resistant cryptography to protect against future quantum computer attacks that can break the current coding and expose sensitive financial data. But how do indian institutions do on this front? Banks and financial institutions worldwide are ready for the day when quantum computers become stable enough to break traditional coding possible, which can cause major data offenses, forged transactions, identity theft and large-scale market manipulation. To guard against this, big players such as JPMorgan, Mastercard, Barclays, Citigroup and Wells Fargo take on quantum-resistant or post-quantum cryptography (PQC) coding designed to withstand such attacks. For example, JPMorgan introduced a quantum-protected, crypto-agile network (Q-CAN) in Singapore using Quantum Key Distribution (QKD), in which coding keys were coded in light particles. Since only a quantum particle is observed, it changes irreversibly, any burglary attempt disrupts the signal, which exposes the tampering. The bank is also aligning its systems with the latest National Institute of Standards and Technology (NIST) standards. In March, it worked with Quantinuum and National Labs in Honeywell to generate certified quantum -based random numbers to strengthen cryptographic systems. Also read: India -quantum -startups win record grants; Move closer to the actual applications in November, Banque de France and the Monetary Authority of Singapore tested quantum-resistant algorithms to encrypt and sign emails about conventional internet systems. They are now planning to extend PQC trials to borderline payment networks. Meanwhile, MasterCard Nist candidate tested algorithms and examined QKD integration in its global network, despite challenges with compatible hardware. If the support of sellers continues, MasterCard expects QKD to be ready for deployment within five years. Why is the tear soon? One might ask: Do financial institutions not wait until quantum computers are stable and market ready, especially since some experts see it happen within ten years, while others say it will last until 2035-2040? In the computers we use in homes and offices today, two pieces can represent one of the four possible states – 00, 01, 10 or 11 – but only one by one. In contrast, two quantum pieces (QUBITS) in a quantum computer can represent all four conditions simultaneously, thanks to super position and entanglement properties, which function effectively like four classic computers in one. But now, while the power of a quantum computer is growing exponentially as you add more quubits, it also causes more mistakes. The reason for developing quantum-resistant cryptography is still the fear that hackers can now steal and store data, waiting for Q-day (when quantum computers surpass classic computers) to cover it with a quantum machine. This form of attack is known as ‘Harvest Now, Decrypt Later’. Traditional coding in risk banks, stock exchanges, insurance firms and fintech platforms depends on public cryptography to secure transactions, protect user identities and maintain the integrity of their operations. They typically use a combination of coding methods to ensure security, which combines the strengths of both symmetrical and asymmetrical cryptography. Symmetrical coding uses a single key to encrypt and cover data. It is fast and efficient and is therefore used regularly to secure large amounts of data. For example, it is used when your phone encodes stored files and by HTTPS websites after performing an initial handshake. However, the challenge is to safely share the key between sender and recipient. Asymmetrical coding, on the other hand, uses two keys: a public key to encrypt data and a private key to decrypt it. Advanced Coding Standard (AES) and Data Coding Standard (Dec) are both symmetrical coding algorithms. Saving data such as customer records or transaction books is very dependent on AES, especially AES-256, due to the strong security and speed. RSA and ECC, on the other hand, are examples of asymmetric coding algorithms. RSA stands for Rivest-Shamir-Adleman, named after its three inventors. It is one of the most used coding methods and ensures data using some keys, one public and one private. ECC stands for elliptical curve cryptography, which also uses key pairs, but relies on mathematical curves for coding. Quantum computers, using Grover’s algorithm, can find the coding key that is used much faster than a classic computer. With Shor’s algorithm – quantum algorithm developed by American mathematical Peter Shor in 1994, a quantum computer asymmetric coding such as RSA and ECC can effectively break. Also read: Three Govt Arms join forces to protect India in the quantum computer era. Classic computers can take more than 1,024 years to break such algorithms, but quantum computers can do so with Shor’s algorithm within a few hours. It is estimated that quantum computers can break RSA-2048 within a few hours or less, once they have about 4,000 Qubits. (Currently IBM’s Condor 1,121 Qubits; It was aimed at a 100,000-quite system by 2033). In 2021, the Bipartisan Policy Center, a thinking tank in Washington, DC, estimated that a quantum attack could cause trillions of dollars to economic losses if financial systems remain unprotected. The World Economic Forum has listed quantum attacks on coding as one of the top 10 threats to cyber security. Against 2029, Gartner predicts that “progress in quantum computer science asymmetrical cryptography will make it unsafe and by 2034 fully fragile. How to prepare Indian financial institutions for this? In a December 2024 white paper with the title ‘Security of the Indian Bank Sector in the era of quantum account’, the Reserve Bank Innovation Hub (RBIH) said Indian Against quantum attacks by utilizing the expertise of technology companies and research institutions, using a phased approach and prioritizing critical infrastructure. exposed. The Respondent Organizations in India said they prototyped PQC solutions, and 49% said they assessed their coding strategies. Coding keys can undermine. have a moderate understanding of quantum computer science, with “an average PQC readiness of just 2.4 out of 5”, which has a lack of preparations, according to a 14, quantum resilient banking: strategies for a safe transition “. holds. India’s abilities in quantum technologies. 25-quite-super-guided quantum computer building. Easier said if the post-quantum cryptography market was valued at $ 356.4 million in 2023 and it is predicted to affect $ 17.69 billion by 2034, according to ResearchandandandMarkets. Roast -based cryptographic techniques, which provide a promising defense at emerging quantum risks … [as they are] It is designed to be resistant to classic and quantum attacks. “QNUA Labs recommends that quantum -random number generators (QRNGs) recommend as they exploit ‘quantum phenomena to create real random numbers, an important element in strong coding’. The implementation of new cryptographic standards can take 10 to 15 years, due to the major operational users, a quick adoption of a few techniques will be faster to of a note of a note of a note of an approach of some techniques, it will be faster to have many users, according to a note of a note of a note of a note of some techniques, the protection of many people will be faster to work, according to a note of a note. and technical challenges on legacy systems.