NEW YORK, July 8 : The cryptocurrency industry is starting to prepare for the threat of quantum computing as recent advances fuel concerns that the technology could soon be able to crack the cryptography that protects transactions and digital wallets. 

Quantum computers can solve complex mathematical problems much faster than today's sophisticated computers, and could be used to unscramble conventional methods for encrypting digital information. That spells trouble for the $2 trillion global cryptocurrency market, which is based on blockchains secured by old-school cryptography and already has a history of major hacks. 

While the technology remains largely experimental, crypto industry concerns have grown since March research from Alphabet's Google, one of several tech giants pioneering the technology, suggested quantum computers may be able to break that cryptography sooner than previously expected, according to executives and analysts. Google has said that quantum computers capable of breaking encryption could arrive by 2029, whereas previously they were seen as at least a decade out.

Recent research from Citigroup and others has also concluded that quantum computing, along with artificial intelligence breakthroughs, has compressed the time frame in which cryptocurrencies will become widely vulnerable to hackers.

Acknowledging the risks the technology poses to the public and private sectors, U.S. President Donald Trump last month issued executive orders to bolster U.S. quantum capability. 

Some crypto companies and blockchain developers are already drawing up plans to upgrade their networks with quantum-resistant cryptography, a potentially years-long effort that could require sweeping changes to the infrastructure underpinning digital assets.

"It's the most direct and existential threat towards cryptocurrencies and crypto networks," said Chris Tam, head of quantum innovation at BTQ Technologies, which focuses on quantum security. 

BLOCKCHAINS USE DECADES-OLD CRYPTOGRAPHY

Most blockchains rely on decades-old elliptic-curve cryptography to generate the public and private keys and digital signatures used to verify ownership of crypto assets and authorize transactions. Public keys are mathematically derived from private keys and, in many blockchain networks, become publicly visible once crypto assets are used in a transaction or transferred.

While conventional computers cannot feasibly derive a...