Quantum Computing Threatens $2 Trillion in Crypto Assets
The $2.16 trillion crypto market is at risk due to quantum computing threats. Researchers have been warning about this for over 30 years, but it's now a pressing concern as more powerful quantum computers become available.
Elliptic curve cryptography, which secures most blockchains and digital assets, including Bitcoin, has been known to be vulnerable to quantum attacks. This type of cryptography is used to prove ownership of a wallet and authorize transactions. According to Quantus co-founder Christopher Smith, over $2 trillion in digital assets rely on this vulnerable technology.
The National Institute of Standards and Technology finalized three post-quantum algorithms in 2024 and has urged organizations to begin migrating now. Google researchers estimate that breaking a 256-bit elliptic curve could require fewer than 500,000 physical qubits, which is about 20 times less than an earlier estimate.
Binance's Bitcoin cold wallet, holding over $10 billion, and Tether's administrative minting key are prime targets. However, Binance's chief security officer Jimmy Su says current quantum computers are 'nowhere near the scale and reliability needed to break the cryptography protecting digital assets.'