Main Highlights
- Quantum computing, though still in its early stages, is identified as a potential future threat to cryptocurrencies utilizing proof-of-work algorithms.
- Industry experts express varying degrees of urgency, with some predicting the threat within years and others advocating for immediate action.
- The development of quantum resistance technology is underway, but current solutions may not be universally applicable to all blockchain networks, particularly Bitcoin and Ethereum.
- Governments, like the US, are reportedly exploring investments in quantum computing for national security reasons, signaling its growing strategic importance.
Quantum Computing: A Looming Threat to Cryptocurrencies?
Quantum computing, despite its nascent stage, is being closely monitored as a potential disruptor for blockchain technology, particularly for cryptocurrencies employing proof-of-work (PoW) consensus mechanisms. Amit Mehra, a partner at venture capital firm Borderless Capital, highlighted this growing concern during a discussion at the Global Blockchain Congress Dubai 2025.
Borderless Capital is actively researching quantum computation and the development of quantum-resistant technologies. Mehra estimates that widespread quantum computing capabilities may emerge by the end of the decade, but cautioned against underestimating the pace of technological advancement. Given the recent advancements which have happened in chip technology, in compute tech, and in the power of doing compute in a decentralized way, it [quantum computing] is definitely a problem. If not imminent… in the very near future, Mehra stated.
Understanding the Quantum Challenge
Quantum computing leverages the principles of quantum physics to perform calculations at speeds far exceeding those of current classical computers. While the technology is still evolving, its potential to break the encryption that secures cryptocurrencies and other sensitive data is a significant concern. This prospect necessitates the development and implementation of new, post-quantum security standards to safeguard digital assets.
Charles Edwards, founder of the quantitative Bitcoin and digital asset fund Capriole, views the threat as more immediate. He stressed the urgent need for the industry to adopt solutions proactively. Edwards expressed his concern on X, stating, If Bitcoin doesn’t solve Quantum in the next year, Gold will keep outperforming it forever. He emphasized the critical nature of the situation, adding, It is an emergency and we need to choose a solution next year.
Industry Efforts Towards Quantum Resistance
Concern over quantum computing’s potential impact extends beyond Mehra and Edwards. In July, SUI Research introduced a new cryptographic framework designed to protect blockchains against quantum threats without requiring disruptive network changes like hard forks or key resets.
💡 While this innovative solution is compatible with networks such as SUI, Near, Solana, and Cosmos, it does not presently address the specific challenges faced by Bitcoin or Ethereum.
Meanwhile, governmental bodies are also recognizing the strategic importance of quantum computing. Reports indicate that the US government is considering significant investments in the field to bolster national security. A Bloomberg report from October suggested that the US Department of Commerce might allocate funds to support this nascent technology, aiming to maintain a competitive edge against China.
Expert Summary
The rapid advancement of quantum computing presents a potential future risk to the security of proof-of-work cryptocurrencies. Industry experts are voicing concerns and emphasizing the need for timely development and adoption of quantum-resistant solutions, though universal applicability remains a challenge.
