New advances in quantum computing are pushing crypto companies to prepare for a potential security challenge that could reshape the industry.
The cryptocurrency sector is stepping up efforts to defend blockchains and digital wallets from future quantum computing attacks. New research from Google suggests powerful quantum machines could break current encryption methods sooner than expected, raising concerns across the $2 trillion crypto market.
Industry executives say the threat remains years away, but preparations are already underway.
Key Details
Google estimates that quantum computers capable of breaking today's encryption could arrive by 2029, earlier than previous forecasts of at least a decade away.
Most blockchains, including Bitcoin and Ethereum, rely on decades-old cryptography to secure transactions. Experts warn that a sufficiently advanced quantum computer could derive private keys from public ones, allowing hackers to steal funds and approve fraudulent transactions.
Bitcoin is viewed as especially exposed because of its long transaction history and large number of visible public keys. Research suggests that around 35% of Bitcoin's circulating supply could be vulnerable, while some studies put the figure closer to 50%.
Major blockchain networks have yet to implement quantum-resistant encryption. The Ethereum Foundation is targeting full protection by 2029, while the Algorand Foundation plans to introduce post-quantum accounts later this year.
Market Reaction
The growing risk has already influenced investor sentiment. Jefferies removed a 10% Bitcoin allocation from its model portfolio earlier this year, citing the long-term threat posed by quantum computing.
Why It Matters
A successful quantum attack on a major cryptocurrency could trigger heavy selling, damage confidence, and send shockwaves across digital asset markets.
The crypto industry still has time to prepare, but the race to upgrade blockchain security has begun. Traders will be watching whether developers can move quickly enough before quantum computing reaches a turning point.
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Source: Reuters
Time: 10:30 AM EEST
