The Good Tech Companies - Why 25% of Bitcoin Supply Faces Quantum Threat and What QANplatform Is Doing About It

Starting point is 00:00:00 This audio is presented by Hacker Noon, where anyone can learn anything about any technology. Why 25% of Bitcoin supply faces quantum threat and what Kwan platform is doing about it, by Ashan Pondi. Greater than what happens when quantum computers become powerful enough to crack the greater than cryptographic foundations securing trillions in digital assets. According to recent estimates, approximately 6.65 million Bitcoin addresses holding around 25% of the total Bitcoin supply already have exposed public keys, making them vulnerable to future quantum attacks. Ethereum faces an even starker reality, with over 65% of all ether potentially at risk. This isn't theoretical speculation anymore.

Starting point is 00:00:43 Organizations like NIST, the Federal Reserve, and Black Rockhave issued warnings about this looming threat, with BlackRock even updating its Bitcoin ETF prospectus to acknowledge quantum computing risks. Kwan Platform, an Estonia-based blockchain platform, announced on November 20, 20th, that its quantum-resistant security protocol, Q-A-N-X-L-I-N-K, has completed a comprehensive cybersecurity audit by Hackin, a blockchain security firm. The Adet validates the protocol's technical approach to protecting digital assets against quantum computing attacks, a problem that most existing blockchain networks have yet to address systematically. Understanding the

Starting point is 00:01:22 quantum threat to blockchain, the vulnerability exists in how blockchain networks currently operate. Every time someone makes a transaction from a wallet, they expose their public key to the network. Think of it like publishing your home address online. Once it's out there, anyone with the right tools can find it. Today's computers can't break the encryption that protects the connection between public keys and private keys. But quantum computers, which process information fundamentally differently than traditional computers, could potentially crack these encryptions in hours or days rather than the thousands of years it would take current machines. This creates what security researchers call the store now, decrypt later, problem. Bad actors

Starting point is 00:02:02 can record encrypted blockchain transactions today and wait until quantum computers become powerful enough to break the encryption and stealth funds. The timeline matters because quantum computing development IS accelerating, while experts debate when, Q day, the point when quantum computers become powerful enough to break current encryption will arrive, the consensus has shifted from maybe decades away to possibly within years. The scope of exposure varies by blockchain architecture. Bitcoin addresses thought they've never sent transactions remain relatively safe because their public key shavened been broadcast to the network. However, addresses that have made outgoing transactions are those using older pay to public key formats have already exposed their

Starting point is 00:02:45 public keys. For Ethereum, the exposure rate is even higher due to how the network handles account creation and transactions. Solana, Kerdana, and other major blockch face similar vulnerabilities, creating a systemic risk across the entire digital asset ecosystem estimated at over $2 trillion in total market capitalization. What Q-A-N-X-L-I-N-K actually does? QANX-L-N-K functions as a cross-signer protocol that bridges existing Ethereum-compatible wallets with quantum-resistant cryptography. Instead of requiring users to abandon Metamask, trust wallet, or other popular wallet interfaces, the protocol adds a quantum-safe signature layer on top of existing infrastructure. The technical implementation uses MLDSA, module lattice-based digital

Starting point is 00:03:33 signature algorithm, which NIST published as FIPS 204 in its post-quantum cryptography standards. The lattice-based approach to cryptography works differently than the elliptic curve cryptography that secures current blockchains. While traditional encryption relies on the difficulty of factoring large numbers are solving discrete logarithm problems, tasks quantum computers could handle efficiently. Latus-based cryptography depends on mathematical problems that remain difficult even for quantum machines. Specifically, it's based on finding the shortest vector in a high-dimensional lattice, a problem where quantum computers didn't offer meaningful advantages. Kwan platform claims K-A-N-X-L-I-N-K provides the only solution that combines Ethereum compatibility with guaranteed quantum-safe migration.

Starting point is 00:04:19 This matters because Ethereum's ecosystem represents the largest concentration of decentralized applications, defy protocols, and NFT infrastructure in Web 3. Creating amigration path that doesn't require rebuilding these applications from scratch-called proof significant if quantum threats materialize on expected timelines. The Hacken Audit Findings, Hackens Audit examined the Q-A-N-X-L-L-I-N-K protocol for security vulnerabilities, code quality, and implementation of the MLDSA algorithm. The audit report, available publicly, validated the protocol's architecture and implementation. Yevina Brashevin, Hackens co-founder and CEO, stated that greater than the quantum thread is no longer a distant concern, it demands proactive greater than preparation for the whole Web3 ecosystem. Hacken has conducted security audits for major Web 3 entities including the Ethereum

Starting point is 00:05:10 Foundation, Metamask, and Binance since 2017, reviewing over 1,500 projects. The firm holds ISO certification as an auditor, giving its assessments weight in an industry where security breaches have cost users billions in lost funds. The audit's completion adds external validation to conplatforms technical claims, though it doesn't eliminate all questions about adoption challenges are competitive positioning. The timing coincides with broader industry recognition of quantum risks. BlackRock's decision to update its Bitcoin ETF documentation acknowledging quantum computing as a potential risk signal that institutional investors are beginning to factor these threats into their risk models. When the world-largest asset manager starts warning investors about a

Starting point is 00:05:54 technical vulnerability, it stops being a niche concern for cryptographers and becomes a mainstream investment consideration. Industry context and competitive landscape Kwan platform positions itself as the first blockchain offering both Ethereum compatibility and quantum resistance, but several projects including QRL, quantum-resistant ledger, and Algorithm are working on quantum-resistant blockchains. The difference is that most require building on entirely new architectures rather than providing backward compatibility with Ethereum's existing ecosystem, which hosts thousands of decentralized applications representing hundreds of billions in locked value.

Starting point is 00:06:31 Johann Palescic, con-platform's co-founder and CTO, stated, greater than, following the success of our QVM, we're forging the path to bring greater than post-quantum security to the broader W.EB3 ecosystem. Kwan Platform is one of the first 20 members of the Linux Foundation's post-Quantum Cryptography Alliance and joined blockchain for Europe in October 2025. The reality check on quantum timelines, current quantum computers have around 100,000 qubits of computational power.

Starting point is 00:07:01 Breaking Bitcoin's SHA-256 encryption would require an estimated 13 million cubits, while Ethereum's SECP-256K-1 signatures might be vulnerable to machines with several thousand logical cubits. However, breakthroughs in error correction or cubit stability could compress timelines unexpectedly, and the store now, decrypt later. Concern means waiting until quantum computers exist to implement protections might be too late. Practical implications and adoption questions. Q-A-N-X-L-I-N-K currently exists as a desktop application that developers can apply TOTUS. Post-Quantum cryptographic signatures are typically larger than current signatures,

Starting point is 00:07:42 potentially affecting transaction costs and blockchain throughput. The protocol success depends on developer and user adoption rates, creating a tragedy of the commons problem where individual users might delay migration duetto inconvenience while collective security depends on widespread adoption. For institutional investors, quantum security is transitioning from theoretical concern to risk management priority. If regulatory frameworks begin requiring quantum-resistant protections for custodial services, adoption curves could accelerate regardless of immediate technical threats. Final analysis, Conflatforms hack and audit represents incremental progress on a genuine long-term threat. The validation provides technical credibility,

Starting point is 00:08:25 and Ethereum compatibility addresses real adoption barriers. However, the quantum threat timeline remains speculative, and the gap between protocol validation and ecosystem adoption is enormous. The most significant contribution might not be Q-A-N-X-L-L-I-N-K itself, but rather the broader attention it brings to quantum preparedness in blockchain. For users and developers, quantum threats to blockchain security are real and worth monitoring, but probably don't require immediate panic. The technology to protect against these threats exists and is being validated. What's missing iscoordinated adoption and clear standards? Don't forget to like and share the story. This author is an independent contributor publishing via our business blogging program.

Starting point is 00:09:09 Hacker Noon has reviewed the report for quality, but the claims here and belong to the author. Hashtag D.Y. Thank you for listening to this hackernoon story, read by artificial intelligence. Visit hackernoon.com to read, write, learn and publish.

The Good Tech Companies - Why 25% of Bitcoin Supply Faces Quantum Threat and What QANplatform Is Doing About It

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