How Startups Can Plan for the Quantum Computing Revolution

A mind-bending tech shift is coming. Quantum computers are poised to solve problems that stump even the strongest supercomputers today. With this new technology comes new innovation—but also new challenges. Cybersecurity in particular will be impacted, as quantum computing will allow hackers to crack encryption that they previously could not. What does this mean for startups and other businesses? Increased risk of damaging data breaches.

Experts anticipate quantum computers will reach a tipping point by 2030, making current encryption methods ineffective. As this future unfolds, forward-thinking startups must prepare strategically. Research suggests companies involved in quantum computing may tap into a market worth nearly USD$80 billion. (1)

Running your own startup? It’s important to start shifting your strategy when it comes to data and cybersecurity now. Learn more about quantum computing and how to start adapting your cybersecurity approach now, below.

The Quantum Threat to Data Security

Data breaches are a constant worry, and businesses of all sizes grapple with data security concerns. Over eight million records were exposed in 2023 alone! No wonder companies invest heavily in security. But with quantum computers looming, encryption is about to get trickier. (2) 

Imagine a code so complex it stymies even the mightiest computers. Conventional encryption methods like Rivest–Shamir–Adleman (RSA) and Elliptic curve cryptography (ECC) depend on complex mathematical problems. But quantum computers play by different rules, and they will be able to easily break these encryption algorithms. The bottom line: your current safeguards might not hold up for long.

‘Harvest now, decrypt later’ attacks also pose a looming threat. Hackers might be stockpiling encrypted data now, then waiting for quantum computers to be able to crack it later. This could expose your sensitive information years down the line, costing you money and trust.

Preparing for the Quantum Future: Transitioning to PQC

Quantum computers are coming, and they threaten data security and today’s encryption method. But there’s a solution for it: preparing for post-quantum cryptography (PQC). These new encryption standards work differently than the current ones, allowing them to safeguard data in the upcoming quantum era.

The National Institute of Standards and Technology (NIST) has picked the best options for this future-proof encryption: ML-KEM (formerly CRYSTALS-Kyber) and CRYSTALS-Dilithium, FALCON, and SPHINCS+. Outside of SPHINCS+, these algorithms are all lattice-based cryptography; this type of cryptography uses matrices versus algebraic formulas (like the traditional algorithms do).

These changes and decisions will impact startups, so staying informed on them ensures a smooth transition for your startup.

Why Startups Need to Prepare Now

Data breaches are, no doubt, a startup killer. They destroy customer trust, which can mean a big drop in reputation and lost sales. Studies show a potential 5-9% hit, which can be devastating, especially for businesses dealing with customers upfront. (3)

Quantum computers might not be mainstream yet, but getting ahead of the curve now is one of the wisest decisions you can make. You’ll be ready to protect your data and maintain customer trust even as technology evolves. Proactive steps taken today can bring you significant benefits in the coming years.

Implementing PQC: Practical Steps for Startups

Feeling overwhelmed by the switch to PQC? Don’t worry, these steps will guide your startup through the process smoothly so you can keep up with the quantum computing revolution.

Step 1: Conduct a Security Audit

First things first: take your current data security setup for a checkup. Think of it as an X-ray for your data encryption. A pro will check for weaknesses that future quantum computers could exploit.

This audit digs deeper than a basic checkup. It finds chinks in your armor against quantum attacks, so you know where to focus your PQC switch.

Step 2: Evaluate PQC Options

The biggest shift will be to quantum-safe hybrid certificates that utilize the new encryption algorithms to protect your data. You will want to start exploring these options now to see which will be the right fit for your company needs.

Step 3: Plan for Migration

Migrating to PQC can feel like adding a new bridge to an old road system. You need a careful plan to make sure everything connects smoothly within your current infrastructure. It should address any compatibility issues that might pop up.

Step 4: Prioritize Implementation

So, you’ve got your plan for integrating PQC in motion. But you have to protect your most valuable assets first. Think of your critical data as your crown jewels.

Focus on putting the new, tougher encryption on the systems that handle that data. This way, your most sensitive information gets the best possible protection right away.

Step 5: Educate and Train

Next, educate your team. Get everyone on the same page about PQC and how to keep data safe in this new quantum era. Train them on any new procedures or systems you put in place during the switch.

Training keeps everyone in the loop, especially when it comes to improving work efficiency using technology. And note that a prepared team is a strong team.

Step 6: Stay Informed and Agile

PQC development is like a high-octane science experiment that’s constantly moving forward. To stay on top of things, keep an eye on announcements from NIST. They’re the ones setting the standards for these PQC algorithms.

On top of that, following industry developments ensures you’re using the latest, most secure algorithms available. This extra vigilance helps you avoid any potential weak spots and keeps your data safe as the whole quantum computing revolution unfolds.

The Post-Quantum Landscape: Opportunities for Startups

Quantum computing promises more than just security challenges. It opens doors to innovation across industries. Drug discovery, materials science, and financial modeling stand to benefit greatly from quantum advancements. Research even suggests that 25% of the Fortune 500 could gain a competitive edge with quantum computing within just three years. (4)

Now, this is where things get interesting for your startup. If you have that cybersecurity know-how and a finger on the pulse of quantum computing, you could be sitting on a goldmine. By jumping on the PQC train early, you’re not just protecting your data; you’re strategically building a business that can thrive in the future.

Conclusion

The quantum computing revolution is coming. There’s no stopping it, so that means startups can’t afford to turn a blind eye. Transitioning to PQC is not only a necessity for your business—it’s a necessity for your customers and their data. Taking action early positions your startup for success in the exciting new quantum era.

References

1. “Quantum computing use cases are getting real—what you need to know,” Source: https://www.mckinsey.com/capabilities/mckinsey-digital/our-insights/quantum-computing-use-cases-are-getting-real-what-you-need-to-know
2. “Number of user accounts exposed worldwide from 1st quarter 2020 to 4th quarter 2023,” Source: https://www.statista.com/statistics/1307426/number-of-data-breaches-worldwide/
3. “Do data breaches damage reputation? Evidence from 45 companies between 2002 and 2018,” Source: https://academic.oup.com/cybersecurity/article/7/1/tyab021/6362163?login=false
4. “A business leader’s guide to quantum technology,” Source: https://www.deloitte.com/global/en/our-thinking/insights/topics/innovation/quantum-computing-business-applications.html