Europol has released two reports detailing the risks quantum computing poses to digital assets and encrypted data. The agency identified cryptographic keys used for wallet management and transaction authorization as primary vulnerabilities. Experts emphasize that transitioning to post-quantum security is a long-term process that requires immediate planning.
According to Glassnode, 6.04 million BTC, or 30.2% of the total supply, have exposed public keys. While hash functions remain relatively resistant, the potential for a quantum computer to derive private keys from public ones poses a threat. Estimates suggest that migrating all Bitcoin UTXO to quantum-resistant schemes could take between 54.45 and 1827.96 days, depending on block capacity utilization.
A second report addresses the 'harvest now, decrypt later' strategy, where encrypted data is stored for future decryption. This poses risks to long-term confidential information, such as government communications and medical records. Organizations are advised to audit their cryptographic protocols and prioritize the protection of sensitive data.
Major tech firms, including IBM and Microsoft, aim to develop large-scale quantum systems by 2029. Recent research from Google and other experts has significantly lowered the estimated number of physical qubits required to compromise current encryption. Meanwhile, industry initiatives like the Bitcoin Security Consortium have pledged $15 million over three years to research post-quantum security for Bitcoin.
The US National Institute of Standards and Technology (NIST) has set 2035 as the target for federal systems to complete their migration to post-quantum cryptography. Beyond this date, NIST proposes phasing out traditional algorithms like ECDSA and RSA. These developments highlight the growing industry focus on preparing critical infrastructure for the quantum era.
