The rapid advancement of quantum computing stands out as a significant threat in the cryptocurrency ecosystem. Citi, one of Wall Street’s leading financial institutions, points out in its new report that recent developments highlight the security risks of both crypto assets and internet infrastructures.
Quantum computers threaten crypto security
In the report shared by Citi bank on Friday, it was emphasized that quantum computers weaken classical encryption systems. Traditional blockchain projects, financial networks, and digital communication systems rely heavily on cryptographic algorithms that are assumed to be mathematically secure. However, new breakthroughs in quantum technology have the potential to change these balances.
Cryptography experts state that a sufficiently powerful quantum computer could crack public key encryption algorithms commonly used in networks such as Bitcoin and Ethereum. In particular, the infrastructure of digital wallets, crypto exchanges and blockchains may become vulnerable to this new technology.
Bitcoin may be more vulnerable
The report stated that Bitcoin is more vulnerable to threats due to its current management model and the slow pace of protocol changes. In particular, points such as public keys that appeared before in the blockchain, wallets that remained dormant, and old address types were emphasized. It was reported that these areas included wallets thought to belong to Satoshi Nakamoto, the founder of Bitcoin.
According to the latest estimates, between 6.5 and 6.9 million Bitcoins are at risk from quantum attacks due to keys currently open on the chain. This amount corresponds to approximately one-third of the total supply in circulation; When calculated at current prices, it indicates a value of approximately 450 billion dollars.
Experts point out that quantum computers developed in the future can quickly reveal private keys before blockchain transactions are verified. In addition, a warning was made that the data now stored encrypted could be collected by malicious people to be decrypted in the future.
Ethereum and post-quantum strategies
The report stated that proof-of-stake-based blockchains such as Ethereum can adapt to protocol updates faster. However, it was warned that if technological developments reach a level that can break the authenticator keys of these networks, the integrity of the system may be endangered.
Although quantum attacks are not expected to become widespread in the short term, experts think that blockchains can take precautions by switching to post-quantum encryption technologies. The crypto community is currently discussing Bitcoin updates such as BIP-360 and BIP-361; It stands out that such developments can be a forward-looking solution.
Despite the risks, Citi bank remains of the view that cryptocurrencies can adapt to technology in the long term. The bank highlights the importance of new quantum resilient solutions and protocol updates across the industry.
