EU’s three financial regulators warn that quantum computing may weaken blockchain cryptographic security
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AT A GLANCE
The European Union's three major financial regulatory authorities said that advances in quantum computing could weaken the cryptographic systems used for blockchain transactions, communications, and databases.
Article
【EU’s three major financial regulators: quantum computing may threaten blockchain cryptographic security】
The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA), and the European Securities and Markets Authority (ESMA）stated in a joint risk update that advances in quantum computing could weaken the cryptographic systems securing blockchain transactions, communications, and databases. Google Quantum AI researchers March estimate that the number of physical qubits required to break the cryptographic technologies used by many cryptocurrencies may be approximately 20 times lower than previously estimated. No computer capable of carrying out such an attack currently exists. Bitcoin developer Jameson Lopp and others February have proposed gradually phasing out the current signature schemes and restricting how unmigrated funds may be used 5 years after the proposal’s activation; the proposal has not been adopted. The Ethereum Foundation plans to make Ethereum’s execution, consensus, and data layers quantum-resistant by 2029 year December.
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Key points
01
The European Banking Authority (EBA), the European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA) issued the warning in a joint risk update.
02
Google Quantum AI researchers estimate that March the number of physical qubits needed to break the cryptographic techniques used by many cryptocurrencies may be approximately 20 times lower than previously estimated.
03
The original text states that no computer capable of carrying out such an attack currently exists.
04
Bitcoin developer Jameson Lopp and others February proposed phasing out the current signature scheme and, upon proposal activation, limiting how unmigrated funds can be used 5 years later.
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The original text states that this Bitcoin-related proposal has not yet been adopted.
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The Ethereum Foundation plans to make Ethereum’s execution, consensus, and data layers quantum-resistant by 2029 year December.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
Blockchains rely on cryptography to secure transactions and data. Three European financial regulatory authorities believe that advances in quantum computing could weaken existing protections; however, the source also states that no computer currently exists that can practically carry out such attacks. Participants associated with Bitcoin and Ethereum have proposed or plan to adopt quantum-resistant measures.
Why it matters to readers
If existing cryptography is weakened by quantum computing in the future, the security and use of blockchain transactions, communications, databases, and unmigrated funds could all be affected.
Beginners need not interpret this as meaning that quantum attacks have already occurred. The source describes potential risks, as well as proposals or plans associated with Bitcoin and Ethereum to address them.
Risks and unknowns
The source does not provide the name, publication date, or full content of the joint risk update by the three regulatory authorities.
“approximately 20 times” is the researchers’ estimate; the original text did not provide a calculation method or a list of applicable technologies.
Bitcoin-related proposals have not yet been adopted, and whether or when they will be implemented cannot be confirmed.
It cannot be confirmed from the original text whether Ethereum's quantum-resistance initiative can be completed on schedule.
The original text does not state when computers capable of carrying out such attacks will emerge.
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Related concepts
Physical qubit
This term is not in the glossary yet. Browse related concepts in the glossary.
An architectural layer responsible for implementing consensus algorithms such as PoW and PoS, enabling network participants to reach agreement on the state of the blockchain.
