Cryptocurrency Financial Advisors

Quantum Risk: Where We Stand Today

Quantum computing chip with overlay text “Quantum Risk: Where We Stand Today” and Sarson Funds branding.
Written by Evan LaMontagne, Project Manager, Sarson Funds Inc.

A Shift From Theory to Timeline

Quantum risk is no longer a distant theory. It is an active technology and security issue with real timelines attached to it. Quantum computers use the principles of quantum physics rather than traditional binary bits, which allows them to solve certain mathematical problems far more efficiently than classical machines. That does not mean a collapse of digital security is imminent, but it does mean the old assumption that this threat is still decades away is becoming harder to defend. The encouraging news is that the cryptography community has anticipated this shift for years and has already developed new algorithms designed to withstand quantum attacks, provided organizations adopt them in time.

How Today’s Encryption Works

Much of the modern internet depends on public-key cryptography. RSA, named for Rivest, Shamir and Adleman, is one of the best-known examples. It allows a user to share a public key openly so others can encrypt data for that user, while only the private key holder can decrypt it. Elliptic curve cryptography serves the same purpose with shorter keys and is now widely used in HTTPS, VPNs and most crypto wallets. A sufficiently powerful quantum computer could undermine the hard mathematical problems that secure both systems, turning what is currently computationally impractical into something feasible with the right hardware. That is why quantum risk matters now, even before such a machine exists at scale.

The “Harvest Now, Decrypt Later” Threat

The threat is not limited to the day quantum computers become capable of breaking current encryption. Attackers can collect encrypted data today and store it for future decryption once the hardware catches up. This “harvest now, decrypt later” dynamic changes the timeline for action. Sensitive data with long-term value, including financial records, government communications and proprietary business information, may already be exposed to that risk. The positive development is that post-quantum cryptographic standards are now available, major technology providers are beginning to deploy them, and regulators are setting timelines for the transition away from vulnerable legacy systems.

Why Crypto Faces a Unique Exposure

Crypto assets fit within this broader discussion, but they face a distinct challenge. Blockchains do not simply use cryptography to protect information in transit. They also place public keys and digital signatures on permanent public ledgers. In a quantum-capable environment, once a public key is exposed on-chain, an attacker could theoretically derive the related private key and take control of the assets. That creates meaningful quantum risk for older Bitcoin outputs, reused wallet addresses and account-based chains such as Ethereum and Solana, where the address structure may reveal the public key. Every major chain that relies on today’s public-key systems will eventually need a migration path to quantum-resistant alternatives.

Early Moves Toward Quantum-Resistant Systems

There is, however, meaningful progress already underway. Quantum-resistant cryptographic tools exist today, and some blockchain projects are already using them in production or testing them on live networks. Algorand has used a quantum-safe algorithm for state proofs since 2022 and demonstrated a fully post-quantum transaction on its mainnet in 2025. Quantum Resistant Ledger (QRL) was built around a conservative hash-based signature model from the beginning. Bitcoin developers have introduced a new output type that can support quantum-safe signatures in the future and continue to debate how best to address older vulnerable coins. Ethereum has outlined a multiyear path to replace at-risk signatures and proofs while managing cost and decentralization concerns. Solana has introduced an opt-in quantum-resistant vault and has also demonstrated fully quantum-safe transactions on a test network. These efforts show that quantum risk is not just a theoretical talking point within digital assets. It is already shaping roadmap decisions.

The Role of Standards and Infrastructure

The broader technology ecosystem is moving in the same direction. Standards bodies have provided clear post-quantum targets, and those standards are beginning to appear in web security libraries, hardware security modules, custody infrastructure and wallet design. Major internet platforms are also adopting hybrid approaches that combine current cryptography with post-quantum algorithms to protect new connections against future decryption attempts. The full transition will take years, especially across legacy devices, embedded systems and long software update cycles, but the technical path forward is increasingly well defined.

From Tail Risk to Migration Strategy

For institutions, allocators and infrastructure providers, the practical conclusion is straightforward. Quantum risk should no longer be viewed as an abstract tail event. It is better understood as a migration challenge with timelines, technical standards and implementation milestones. The question is not whether secure communication and digital assets can survive the quantum era. They can. The more important question is which platforms, service providers and protocols will complete the transition early enough, and with the least disruption, to preserve trust and continuity.

A Deadline, Not a Doomsday

When people ask whether quantum computing will break the internet or kill crypto, the more precise answer is that quantum computing threatens the public-key cryptography many systems use today. It does not invalidate the broader concept of secure digital networks or digital ownership. The risk is real, but it is manageable if organizations act before quantum capability overtakes current defenses. Q-Day is best understood not as a sudden apocalypse, but as a deadline. Some companies and networks have already started the transition. Others will need to accelerate. The tools exist, the standards are in place, and execution now matters more than speculation.


Disclosures: This article is for informational purposes only and should not be considered financial, legal, tax, or investment advice. It provides general information on cryptocurrency without accounting for individual circumstances. Sarson Funds, Inc. does not offer legal, tax, or accounting advice. Readers should consult qualified professionals before making any financial decisions. Cryptocurrency investments are volatile and carry significant risk, including potential loss of principal. Past performance is not indicative of future results. The views expressed are those of the author and do not necessarily reflect those of Sarson Funds, Inc. By using this information, you agree that Sarson Funds, Inc. is not liable for any losses or damages resulting from its use.

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