Recent rapid advancements in quantum computing technology have brought the quantum threat back to the forefront of security concerns for cryptocurrencies, particularly Bitcoin.
The possibility that sufficiently powerful quantum computers could break the current cryptographic systems of cryptocurrencies raises concerns about the long-term security of digital assets.
Therefore, transitioning to quantum-resistant technologies and preparing existing networks against quantum attacks is becoming increasingly important in the crypto sector, and warnings are mounting.
Europol Warning: Wallets May Be Targets of Quantum Attacks!
At this point, the latest warning came from Europol, the European Union’s law enforcement agency. Europol highlighted the risks that quantum computers could pose to the cryptocurrency ecosystem in the future, stating that the sector should strengthen its security infrastructure now.
A report titled “Quantum Computing and Cryptocurrencies,” prepared by Europol’s European Cybercrime Centre, states that quantum technology could pose a serious threat, particularly to cryptographic keys used in cryptocurrency wallets.
Europol emphasized that if quantum computers become sufficiently advanced, a private key could be derived from a public key, allowing attackers to transfer users’ funds without authorization.
The Biggest Risk is in Wallets!
Europol states that the emergence of quantum computers is not expected to lead to a complete collapse of the cryptocurrency market.
However, the main risk lies in funds held in wallets where public keys have become visible on the blockchain. These wallets may not be able to be retroactively secured once quantum attacks become possible. According to Europol, such funds need to be moved to new, quantum-resistant wallets before an attack occurs.
Europol is now recommending that the cryptocurrency sector develop a phased plan for transitioning to quantum-resistant cryptography without waiting for the quantum threat to materialize. The organization states that wallet security, key management, and network protocols should be addressed together.
Europol’s warning aligns with Glassnode’s research on the Bitcoin network. In its analysis published in May, Glassnode estimated that 6.04 million BTC, or 30.2% of the circulating Bitcoin supply, already have their public keys visible on the blockchain.
*This is not investment advice.
