When there are advances in digital cryptography, they have the possibility to make cryptocurrency transactions faster and more secure.

Multi-Party Computation

Multi-party computation is a way for people to carry out secure joint computations without revealing their inputs. Individuals hold key shares so there is no one place a hacker can steal the key. MPC has been around since Andrew Yao began his studies of it in 1986, but the technology is just now evolving to secure blockchains.

Post-Quantum Cryptography

If computers harness the power of quantum computing, they could become so much faster. Google has a prototype quantum computer which they claim is 100 million times faster than any other computer. It is still experimental though. Experts fear the speed is a threat to crytocurrency's security, but the blockchain is safe. Hackers could use quantum computers to hack individual currency accounts as it would be much easier to hack a 64-character key combination. Still, we are light-years away from having quantum computers so digital coins are safe for now.

ZK-Proofs Making Blockchains More Private

Zero-knowledge proof systems, or ZK-Proof, are a sensational development in cryptography. The privacy-preserving technology may soon be a second-layer solution for top cryptocurrencies Bitcoin and Ethereum's blockchains. Zero-knowledge proofs allow for data sharing without data sharing or passwords. No information can be compromised, and the protocol is already in use at Zcash, a mainstream privacy coin.

Blockchain firm Suterusu is developing ZK-Proof-enabled privacy for Bitcoin and Ethereum. The company's CTO said ZK-Proof's will significantly improve privacy. They are developing new zero-knowledge proof known as zk-ConSNARK. It does not require the trusted setup used by Zcash.

Advanced encryption techniques should help ensure the future of digital coins as investors would worry less about hacks, It's unlikely many consumers would understand mathematically complex digital cryptography, but institutions would feel more secure investing in cryptocurrencies and individual investors will follow.