Quantum Threats Loom Over Blockchain Data

European Union regulators have warned that advanced quantum computers could compromise cryptographic systems used to secure databases and blockchains by 2026. The European Supervisory Authorities (ESAs) believe threat actors are actively intercepting and storing encrypted onchain traffic today, planning to decrypt it once quantum hardware scales.

The ESAs recommend financial entities transition away from legacy cryptographic solutions and toward quantum-resistant algorithms. They mandate that financial entities adopt state-of-the-art cryptography against new threats under the Digital Operational Resilience Act (DORA).

Cysic founder Leo Fan notes that major Layer 1 blockchains like Bitcoin, Ethereum, and Solana need signature upgrades to protect against quantum threats. 'Post-quantum signature standards already exist, so deployment can begin now,' Fan said.