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Cryptocurrencies are based on unproven mathematic formulas, writes finews.com editor Frédéric Papp in an exclusive essay for finews.first. You will win a million dollar if you manage to come up with proof, and it would spell the end of bitcoin et al.

finews.first is a forum for renowned authors specialized on economic and financial topics. The texts are published in both German and English. The publishers of finews.com are responsible for the selection.

Admittedly, comparing Achilles, the hero from ancient Greek mythology who brought down the Trojans for his Spartans almost single-handedly, with bitcoin, the precursor to today’s wave of cryptocurrencies, may appear a tad bizarre – but there are some parallels.

Much like cryptocurrencies, with bitcoin at  the fore, Achilles was assumed to be unassailable. And much as Achilles, the defenders of the cryptocurrency see an immeasurable force in the digital coin, something that will turn the entire financial system upside down.

Cryptocurrencies attract more and more interest in everyday life and within investment circles. But respected financial experts still harbor considerable doubt whether the currencies can survive – if they in fact are currencies in the first place. The same experts though accept the significant potential for disruption through the underlying technology, the Blockchain.

«In earlier times, we had secret meetings, code books or secret languages»

So, what about the unassailability of cryptocurrencies? Achilles wasn’t, after all. He died having been hit by an arrow shot by Paris, the son of the Trojan king. The arrow pierced the right heel of the warrior, the only place where a shot would proof deadly.

Bitcoin et al. may also have a deadly spot. I chose the subjunctive on purpose, for so far it is absolutely unproven whether there is indeed such a lethal spot. The problem essentially is a yet to be solved mathematical problem arising from theoretic information technology, namely whether they are kept safe by highly complex encryption.

In short, cryptography ensures the passage of information from A to B without a possibility for third parties to see what data is being exchanged – a timeless need. In earlier times, we had secret meetings, code books or secret languages. Today there are endless encryption sequences of prime numbers.

«In future so-called quantum computer might be able to force encryption codes»

Sender and recipient need to know the key to be able to decrypt the information. This is the principle upon which the production and trade of cryptocurrencies are based, but also e-banking or mobile banking as well as encrypted email communication. Penetrating the encrypted system hitherto was only possible if the key got lost or if a hacker managed to get hold of it thanks to a well-executed move.

But the deciphering of encryption in the true sense of the word, by way of used an algorithm so far hasn’t succeeded. The reason: encryption is so complex that mathematicians may know the way to the solution to force it. But the deciphering would take immeasurably long even with the help of the strongest computer available.