What is a quantum bit (qubit) and how does it work?

A quantum bit, or qubit, is the basic unit of quantum computing—the quantum equivalent of a regular computer bit. While traditional bits are either 0 or 1, qubits can exist in superposition, meaning they're simultaneously 0 and 1 until measured. This unique property allows quantum computers to process vast amounts of data exponentially faster than classical computers. Qubits also use entanglement, where multiple qubits become interconnected so measuring one instantly affects others. In cryptocurrency, quantum computing poses both threats and opportunities: it could theoretically break current encryption methods protecting wallets and transactions, but it also enables new cryptographic solutions. The crypto industry is developing quantum-resistant algorithms to prepare for this potential threat.