How Does Quantum Computing Threaten Crypto?

The Quantum Threat to Cryptocurrency

How Current Crypto Security Works

Every crypto wallet has a private key and a public key. Your public key (or address) is visible to everyone. Your private key must stay secret. The security assumption: it's computationally infeasible to derive the private key from the public key.

This assumption holds for classical computers — but not for quantum computers.

Shor's Algorithm: The Quantum Threat

In 1994, mathematician Peter Shor developed an algorithm that runs efficiently on quantum computers and can:

• Factor large integers exponentially faster than any classical algorithm
• Compute discrete logarithms (the basis of ECC) exponentially faster

This means a quantum computer running Shor's algorithm can derive a private key from a public key. Every Bitcoin, Ethereum, or other crypto address that has ever revealed its public key (i.e., sent any transaction) becomes vulnerable.

The Scale of the Threat

• Bitcoin: ~4 million BTC in addresses that have revealed public keys
• Ethereum: Virtually all active addresses have revealed public keys
• Total at risk: Potentially hundreds of billions of dollars

Timeline: When Will Quantum Computers Be Dangerous?

NIST estimates quantum computers could break ECC with as few as 4,000 logical qubits. Current machines have hundreds — but progress is accelerating.

Harvest Now, Decrypt Later (HNDL)

The threat exists TODAY even without a quantum computer. Nation-state actors are harvesting encrypted data now to decrypt it when quantum computers arrive. Any crypto transaction made today could be retroactively analysed.

BMIC's Solution

BMIC implements NIST FIPS 203/204/205 — cryptographic algorithms designed to resist quantum attacks. BMIC wallets are quantum-safe from day one, not after an upgrade that may never come.