A research team in China has successfully factored a 22-bit RSA integer using a quantum computer, marking a significant step forward in encryption cracking. What implications could this have for crypto security?
Using a quantum annealer developed by D-Wave, researchers at Shanghai University applied a novel method to transform the factoring problem into a format compatible with the quantum machine, according to a report from Earth.com.
RSA (Rivest-Shamir-Adleman) is a widely used public-key cryptosystem that secures data transmission across platforms such as online banking, web browsers, email, messaging apps, VPNs, and cloud services.
While 22 bits is still far smaller than the 2,048-bit or 3,072-bit keys typically used in real-world encryption, this breakthrough surpasses the previous 19-bit record and demonstrates quantum computing’s growing potential.
By adjusting model parameters, the team improved success rates and indicated that their approach could scale to factor larger keys in the future. This suggests that, with increased computational power, the supposedly unbreakable RSA encryption could eventually be vulnerable.
In response, organizations like NIST and the White House are already implementing quantum-resistant standards and urging agencies and businesses to adopt post-quantum cryptography, warning about “harvest now, decrypt later” attacks where encrypted data is collected now and decrypted once quantum computers become powerful enough.
Does cryptocurrency use RSA encryption?
While RSA encryption is widely used across many digital systems, most modern cryptocurrencies do not use it for signing transactions or securing wallets. Instead, cryptocurrencies like Bitcoin and Ethereum primarily rely on Elliptic Curve Cryptography (ECC), including the Elliptic Curve Digital Signature Algorithm (ECDSA) and the newer EdDSA used in recent projects.
That said, RSA still plays an important role in other critical areas of the crypto ecosystem. For example, some crypto exchanges, custody services, and payment platforms continue to use RSA encryption for their SSL/TLS infrastructure to secure communications.
Additionally, certain cold storage solutions, older crypto projects, and legacy wallets containing sensitive data may still depend on RSA for internal key storage or backup encryption. The same is true for encrypted archives and backups maintained by crypto custodians and blockchain companies.
Why the RSA quantum breakthrough matters for ECC?
Although this experiment focuses on RSA, it doesn’t mean that Elliptic Curve Cryptography (ECC) is immune. Both RSA and ECC are vulnerable to quantum attacks through Shor’s algorithm—a quantum algorithm capable of efficiently factoring large numbers and solving discrete logarithm problems.
Shor’s algorithm poses a serious threat to many modern cryptographic systems. While it may not yet endanger the more advanced crypto systems in use today, it signals that quantum advancements are moving beyond theory into practical reality.
The bigger concern is that if quantum hardware continues to scale and successfully runs factoring algorithms, cracking ECC won’t be far behind. A sufficiently powerful quantum computer using Shor’s algorithm could forge blockchain transactions, break encrypted communications between wallets and nodes, and even extract private keys from public Bitcoin or Ethereum addresses.
For now, crypto projects should remain vigilant by conducting thorough security audits of vulnerable areas such as TLS certificates, API encryption, VPNs, and off-chain key management to help prevent potential breaches.
