On June 24, 2025, researchers from Shanghai University reportedly factored a 22-bit RSA key using a quantum annealing system, marking a new milestone in quantum computing.
While the key size was not large enough to threaten modern encryption, the experiment adds momentum to the global conversation around quantum threats to digital security — including cryptocurrency wallets.
What Was Actually Broken?
The team used a D-Wave quantum annealer to solve a simplified version of the integer factorization problem, successfully factoring a 22-bit RSA key. In cryptographic terms, this size is considered negligible — far below what’s used in real-world applications.
A 22-bit RSA key is smaller than what’s used in real applications by a factor of 10^60 — roughly equivalent to guessing a four-digit PIN versus a 600-digit one.
RSA encryption in practical use typically involves keys that are 2048 bits or longer.
Additionally, most blockchain systems — including Bitcoin and Ethereum — do not rely on RSA at all. Instead, they use elliptic curve cryptography (ECC), which requires entirely different methods to break.
Although the experiment does not endanger any current cryptographic systems, it demonstrates incremental progress in quantum capabilities and highlights the need for ongoing attention to post-quantum security.
Are Self-Custody Crypto Wallets Affected?
Self-custody wallets are not currently at risk from the methods demonstrated in the recent announcement. These wallets generally rely on:
Quantum annealing does not currently have the capability to break ECC or hash-based encryption schemes at practical key lengths. The research conducted on June 24 should be viewed as an early-stage exploration rather than an immediate threat to blockchain security or wallet infrastructure.
What Could Happen As Quantum Tech Advances?
In the long term, general-purpose quantum computers could pose a threat to ECC via Shor’s algorithm — a quantum technique that, in theory, could derive private keys from public keys. This would impact any blockchain address that has ever been used to send funds, as the public key is revealed in the transaction.
Addresses that have never broadcast their public key (i.e., “unused” addresses) are considered more resistant, even in a post-quantum scenario.
To address this, cryptographers and standards organizations like NIST are actively developing post-quantum cryptographic (PQC) algorithms. Several candidate algorithms have already been selected for standardization and are expected to be gradually adopted by software and hardware providers.
Best Practices for Self-Custody Users
While there is no current need to migrate funds, it is worth staying informed. Crypto users can reduce future exposure by:
It’s also wise to follow development from trusted cryptography institutions and upgrade when post-quantum protocols become available in mainstream wallets and blockchains.
How This Impacts Your Wallet Security
China’s June 24 announcement represents progress in quantum research, but it does not present an immediate risk to current cryptographic systems used in self-custody wallets. Still, it reinforces the importance of preparing for a future where quantum computing plays a larger role in cybersecurity.
Ongoing investment in post-quantum standards and prudent wallet management remain the best defense as the technology evolves.
How Best Wallet Handles Privacy and Key Rotation
Most modern self-custody wallets automatically rotate (generate new) addresses for each transaction, thanks to Hierarchical Deterministic (HD) wallet standards like BIP-32/39/44.
Best Wallet is a Hierarchical Deterministic (HD) wallet, which means it automatically generates new addresses for every transaction. This feature is important for both privacy and security.
Best Wallet’s commitment to complete user privacy is further underscored by its no-KYC stance. It does not require any KYC or government identification to create an account, which explains its soaring popularity among those who prioritize the privacy of their data above any other thing.
Besides being one of the best privacy-focused non-custodial wallets, Best Wallet is also gaining attention for its easy-to-use, feature-driven facility, designed to help users maximize their assets.
A multichain wallet, Best Wallet currently supports Bitcoin, Ethereum, BNB Smart Chain, Polygon, and Base, with plans to add Solana, Tron, and XRP soon. This makes it a strong option for those looking to buy, swap, and store thousands of crypto assets across multiple networks within a single interface.
The Web3 wallet also prioritizes low fees and moderate exchange rates, which is why it has integrated reliable onramp providers only.
Among its top features, one that seems to be the most popular is the “Upcoming Tokens” tool, tailored to streamline access to new cryptocurrencies with strong potential. Other key features such as staking, iGaming, and portfolio management solidify its market position.
It’s therefore no surprise that prominent crypto influencers are backing it as the best solution for those aiming to capture maximum returns from the ongoing bull cycle.
Download Best Wallet
