Quantum Threats Loom Over Blockchain-Based Cryptocurrency Wallets

A new study has shed light on the potential vulnerabilities of blockchain-based cryptocurrency wallets to quantum computer attacks. Researchers from Caltech and Oratomic, a quantum startup, found that a system with around 10,000 qubits could break ECC-256 encryption, which secures Bitcoin and Ethereum blockchains, in about 10 days.

The study also explored the feasibility of breaking RSA-2048 encryption, used by financial institutions to secure their web2 platforms. While this proved more challenging, requiring around 102,000 qubits and approximately three months in a highly parallelized setup, it still raises concerns about the security of these systems.

One of the key findings was that elliptic curve cryptography is particularly vulnerable to quantum attacks due to its ability to achieve comparable security with smaller keys. This makes it easier for a quantum machine to crack the encryption and gain access to funds.