Quantum computing continues to advance rapidly, with many believing that its commercial use is not far away, leading several experts to believe it could pose a serious risk to the crypto industry. Many of today’s leading blockchains are secured by cryptographic methods, which may one day be threatened by quantum computers.
Quantum-powered attacks could begin by slowly siphoning funds from large wallets or lowering the threshold needed to take over a network. According to Colton Dillion, co-founder of Quip Network, a quantum-enabled attacker might only need 26% of network control to compromise a blockchain, far less than the traditional 51% threshold.
Nutan Sharma, Head of Risk at D24 Fintech Group, said, “The crypto industry ‘must act now’ to avoid walking into an existential threat, as quantum computing is not science fiction anymore. With governments investing over $44.5 billion into quantum initiatives globally, the threat to blockchain security is growing fast, and the crypto space needs to adapt even faster.
“The problem is twofold. Firstly, governance models in major projects like Bitcoin and Ethereum rely on processes like BIPs (Bitcoin Improvement Proposals) and EIPs (Ethereum Improvement Proposals), which are not built for fast, emergency response. Major protocol upgrades can take years, while quantum progress is moving much faster. Secondly, the processes needed to introduce quantum-resistant encryption are both politically and technically challenging, especially in communities that value immutability and decentralisation.
“There are a number of projects prioritising security upgrades for high-value wallets, a similar strategy to traditional finance risk management,” added Sharma. “But across the ecosystem, there is a lack of urgency despite experts estimating it will take three to five years for quantum computing to reach a point where today’s cryptographic systems become obsolete.
“Quantum computing will affect cryptocurrencies differently, with Bitcoin and other Proof-of-Work coins being especially vulnerable due to their exposed public key infrastructure and consensus model. If a quantum attack is successful, it could break not only the code but the very narrative that gives Bitcoin its cultural and financial weight.”
