Crypto Firms Develop Quantum-Resistant Plans as Google Warns of 2029 Threat

Cryptocurrency firms are developing plans to upgrade networks with quantum-resistant cryptography following advances suggesting quantum computers could break existing encryption sooner than expected. Google's research indicates quantum computers capable of breaking encryption could arrive by 2029, reports Reuters. Crypto transactions' finality—with no bank or intermediary to reverse them—makes stolen funds unrecoverable if quantum computers enable bad actors to forge digital signatures and authorize transactions the real owner never approved.

Google Research Indicates 2029 Quantum Encryption Breakthrough

Google's research indicates quantum computers capable of breaking encryption could arrive by 2029, reports Reuters. Today's computers lack the power to work backward from a public key to uncover the private key that controls a wallet. Quantum computers could eventually change that, allowing bad actors to forge digital signatures and authorize transactions the real owner never approved.

Bitcoin Faces 35-50% Supply Exposure Risk

Bitcoin is particularly vulnerable due to its 17-year history generating visible public keys, with estimates that 35% to 50% of its supply could be exposed. Chris Tam, head of quantum innovation at BTQ Technologies, states: "It's the most direct and existential threat towards cryptocurrencies and crypto networks."

Industry Experts Warn of Existential Threat

Christopher Wood, head of equity strategy at Jefferies, in his January newsletter, unloaded a 10% BTC allocation from his model portfolio, citing the long-term "existential" threat of quantum computing. Utkarsh Ahuja, managing partner at Moon Pursuit Capital, says: "Crypto especially is uniquely exposed because blockchains are transparent and permanent."

Ethereum Targets 2029, Algorand Plans Protection Later This Year

The Ethereum Foundation targets 2029 for full protection. Algorand plans support for post-quantum accounts later this year. Plans include post-quantum signatures, though challenges like larger signature sizes and decentralized consensus remain. None of the top 20 blockchains have implemented such algorithms yet.

FAQ

What timeline did Google research provide for quantum computers breaking encryption? Google's research indicates quantum computers capable of breaking encryption could arrive by 2029, according to Reuters reporting.

How much Bitcoin supply is estimated to be vulnerable to quantum attacks? Estimates indicate 35% to 50% of Bitcoin's supply could be exposed due to the cryptocurrency's 17-year history generating visible public keys.

When do Ethereum and Algorand plan to implement quantum-resistant protections? The Ethereum Foundation targets 2029 for full protection, while Algorand plans support for post-quantum accounts later this year.