
Bitcoin's quantum countdown has already begun, Naoris CEO says
David Carvalho, CEO of post-quantum infrastructure firm Naoris Protocol, began hacking at the age of 13, experimenting with spam emails to attract job offers and gain attention from employers.
Eventually, that curiosity shifted into formal cybersecurity work, where he used the same skills to defend systems instead of probing them. Today, he builds quantum-resilient systems for decentralized networks and claims that the cryptographic foundations of blockchains like Bitcoin and Ethereum are dangerously outdated.
'The cryptography behind nearly every chain is as weak as the rest of the world's cryptography,' Carvalho told Cointelegraph. 'Quantum is coming for it all, like meteors came for the dinosaurs.'
Though Bitcoin and other blockchain developers often claim there's still plenty of time to adapt, the window may be closing fast. Efforts to implement quantum-resistant signatures are underway, but Carvalho said they're far from widespread or treated with the urgency the threat demands.
The quantum threats harvesting Bitcoin data today
For years, the idea that quantum computers could threaten Bitcoin felt like science fiction. But real-world developments suggest the threat is shifting from theory to early practice.
Governments and tech giants are already preparing for what's known as the 'harvest now, decrypt later' model. US federal agencies, such as the National Institute of Standards and Technology, have warned since 2022 about the urgency of adopting quantum-resistant algorithms, while a White House memorandum prompted the NSA to advise government contractors to migrate to post-quantum cryptography by 2035.
Today's quantum technology still falls short of cracking Bitcoin's SHA-256 hash function or the Elliptic Curve Digital Signature Algorithm (ECDSA) that secures crypto keys. But researchers like Carvalho argue that exponential breakthroughs — especially when paired with AI — could arrive abruptly. State-sponsored actors and cybercriminal groups are already collecting encrypted blockchain data now, hoping to decrypt it once quantum hardware catches up.
'The adversaries collecting encrypted blockchain data right now aren't waiting to attack today,' Carvalho said. 'They're building data sets for tomorrow. When the tech catches up, they'll unlock a decade of secrets in minutes.'
Despite these warnings, most of the Bitcoin community doesn't see quantum computing as an immediate threat, and there's no widespread sense of panic.
Bitcoin's current cryptography is still considered robust against existing quantum machines, and developers have begun exploring defenses like BIP-360, which proposes quantum-resistant addresses. Projects like Carvalho's Naoris Protocol are also working to help blockchains transition to post-quantum cryptographic standards. Quantum laced with AI is Bitcoin's real apocalypse
While most conversations about quantum threats focus on brute-force attacks on cryptographic keys, Carvalho believes the true danger lies in the convergence of quantum computing and artificial intelligence. Together, he argues, they could enable stealthy, asymmetric attacks that don't overwhelm crypto systems with power but dismantle them with precision.
'Everyone's waiting for a countdown that won't come. You won't get a warning that a 10-year-old Bitcoin wallet has been cracked. You'll just see funds moved, and no one will be able to prove how or by whom,' he said.
AI is already embedded in cybersecurity — used for intrusion detection, smart contract auditing and anomaly detection. But in the wrong hands, the same tools could be flipped. An AI attacker could automatically scan open-source wallets for edge-case bugs, simulate validator responses and adapt in real time to network behavior. If paired with a quantum computer capable of breaking elliptic-curve private keys, the result wouldn't be a loud breach, but what Carvalho calls a 'silent collapse.'
'This isn't just about stealing coins,' he said. 'It's about eroding trust invisibly. Entire blockchains could be compromised, governance systems spoofed, and no one would know who did it or how.'
AI-driven tests have found vulnerabilities in cryptographic libraries that traditional tools overlook. Combine that with adversaries stockpiling encrypted data under the 'harvest now, decrypt later' model, and the groundwork for a systemic breach may already be in place.
Carvalho warned that this could mark Bitcoin's true apocalypse if left unaddressed — not a dramatic livestreamed cracking of SHA-256 but a slow, silent erosion of the trust layers that hold the system together. Bitcoin can't defend against weak links
For all the talk of Bitcoin's decentralization, its real-world infrastructure remains deeply centralized. Cloud platforms, mining pools and validator networks all present vulnerable chokepoints that quantum-capable adversaries could exploit. If a single cloud provider hosting hundreds of full nodes is compromised, the damage could ripple across the entire network, regardless of how decentralized the protocol itself claims to be.
'Decentralization is great on paper, but if everyone's routing through the same few backbones or trusting a handful of third-party APIs, the game's already lost.'
The quantum threat could exploit the blind spots in the systems around it: centralized infrastructure, aging technology and trust assumptions.
Some projects are already being prepared. Carvalho's Naoris, for example, draws on national security frameworks to build decentralized systems designed for a post-quantum world. Others are developing quantum-resistant rollups, new key formats and protocol upgrades through Bitcoin Improvement Proposals (BIPs) or leveraging inherently secure technologies like StarkWare's STARKs.
The threat is approaching, but the response is also growing. What remains is whether the crypto ecosystem will act before it's too late.
Source: https://cointelegraph.com/news/bitcoin-quantum-countdown-has-begun-naoris-ceo
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


Zawya
an hour ago
- Zawya
YBUOJ Responds to BaFin Announcement, Reaffirms Compliance Credentials and Global Regulatory Commitment
COLORADO, USA - Media OutReach Newswire - 28 July 2025 - YBUOJ has issued an official response to a recent notice from the Federal Financial Supervisory Authority of Germany (BaFin), which alleged that the platform was offering crypto asset services in Germany without the necessary authorization. In its statement, YBUOJ firmly reaffirmed its commitment to regulatory compliance, emphasizing that it operates under a robust legal framework and actively seeks licenses across global jurisdictions. YBUOJ currently holds a U.S. Money Services Business (MSB) license issued by the Financial Crimes Enforcement Network (FinCEN) and is also registered with the U.S. Securities and Exchange Commission (SEC). These federal-level credentials confirm the lawful status and adherence of YBUOJ to high compliance standards. YBUOJ emphasizes that its possession of an MSB license and SEC registration signifies its adherence to strict compliance standards, with trading activities subject to oversight by authoritative regulators. This indicates that YBUOJ operates not only legally and compliantly in the U.S. market, but also meets high standards in terms of operational transparency and security. The BaFin announcement to jurisdictional differences in how licensing of foreign entities is interpreted. YBUOJ clarified that it is headquartered in the United States and does not maintain a legal entity in Germany. As such, it is regulated under U.S. law and aligned with internationally recognized compliance norms. The notice, YBUOJ suggested, likely stems from a regulatory communication gap rather than a breach of German financial law. Drawing a broader parallel, YBUOJ pointed to similar cases involving major exchanges like Binance, which faces varying degrees of regulatory acceptance across markets despite holding valid licenses elsewhere. Such discrepancies are common in the fragmented global crypto regulatory landscape. In its response, YBUOJ reaffirmed its commitment to compliance and welcomed regulatory guidance. It pledged full cooperation with German authorities to clarify the facts, stressing that the notice of BaFin relates only to licensing declarations and does not affect operations or asset security. YBUOJ clarified that the announcement of BaFin was a routine consumer advisory, not a penalty, and urged rational interpretation. European users can continue accessing the platform and trading as usual. YBUOJ will use this opportunity to enhance communication with regulators in Germany and other regions, maintaining its commitment to compliant, reliable global digital asset services. Hashtag: #YBUOJ The issuer is solely responsible for the content of this announcement. YBUOJ Digital Trade Limited


The National
2 hours ago
- The National
Federal Reserve meeting: If not now, then when?
The Federal Reserve enters this week facing relentless pressure from the White House, mixed economic data and continued uncertainty. Yet, in the face of it all, the US central bank is expected to hold rates steady once more. The meeting comes less than a week after President Donald Trump's tour of the Fed headquarters, where he and Federal Reserve Chair Jerome Powell publicly bickered over the renovation project's costs. But with Mr Trump on holiday in Scotland, focus now shifts towards the Fed's interest rates. Mr Powell had acknowledged the bank would have cut rates by now were it not for Mr Trump's tariffs, which have put the global economy on edge since his announcement on April 2. The President's harsher 'reciprocal tariffs' are due to take effect on Friday. Meanwhile, recent data shows that other charges are beginning to be passed on to consumers. The Labour Department's Consumer Price Index (CPI) report showed that inflation rose to 2.7 per cent annually in June. Everyday goods such as toys, household appliances and clothing also saw price increases. Citing uncertainty surrounding tariffs and the current inflation level above its 2 per cent target, most Fed officials are signalling they will keep their target range level for a fifth consecutive meeting at 4.25 to 4.50 per cent. The UAE Central Bank, which mirrors Fed decisions due to the dollar peg, would also be expected to hold rates at 4.4 per cent following the US central bank's announcement. Path forward According to the Fed's projections from June, it still expects to cut rates twice this year to bring its target level to around 3.9 per cent. But with the central bank likely to hold interest rates at this meeting and only three left on the calendar this year, the window to cut is closing. 'We're simply taking some time,' Mr Powell said during a panel discussion in Portugal at the start of July. Mr Powell has practised extreme caution towards cutting rates this year, afraid that moving too soon or too quickly could lead to a renewed spike in prices not long after the most recent inflationary surge, with CPI inflation peaking at 9.1 per cent in 2022. 'When you get through an inflation episode like that, by the skin of their teeth, they're going to be really careful about anything that looks inflationary from now on,' said Derek Tang, an economist at LHMeyer/Monetary Policy Analytics in Washington. Traders anticipate the Fed will resume cutting rates in September, before reductions in October and December, according to CME Group data. A deluge of economic data this week should also give Fed officials greater clarity on the direction of the economy. When you get through an inflation episode like that, by the skin of their teeth, they're going to be really careful about anything that looks inflationary from now on Derek Tang, economist at LHMeyer / Monetary Policy Analytics The Labour Department will provide fresh insight into the health of the labour market with the Job Openings and Labour Turnover Survey on Tuesday and the June unemployment report on Friday. The government will also report on second-quarter GDP hours before the Fed rate announcement. US economic activity contracted by 0.5 per cent in the first quarter, but economists note that was due to a surge of imports as business rushed to get ahead of tariffs. The Fed's preferred inflation metric – Personal Consumption Expenditures Price Index – for June is also due to be released on Thursday. Fed divisions Not everyone might be on board with the committee's decision this time. Public remarks indicate a growing division inside the rate-setting Federal Open Market Committee. Fed Governor Christopher Waller, who holds a permanent vote on the rate-setting committee, laid out his case for a quarter-point cut earlier this month. Speaking in New York, he said the Fed should not wait for further weakening in the labour market to act. 'With inflation near target and the upside risks to inflation limited, we should not wait until the labour market deteriorates before we cut the policy rate,' he said. US job growth was more solid than expected in June, although most of those gains occurred in the government sector. At the same time, the unemployment rate has remained steady around 4.1 per cent. Dissents among FOMC members are rare. Under Mr Powell's stewardship, only 3 per cent of dissents have come from a Fed governor. 'I'm sure it'll get a lot of attention,' said David Wilcox, senior fellow at the Peterson Institute for International Economics and director of US economic research at Bloomberg Economics. However, he argued such disagreements could guard against groupthink. Fed Vice Chair for Supervision Michelle Bowman could join Mr Waller's dissent after she voiced her own support for a rate cut this month. It would be the first time two Fed governors dissented on a rate move since 2002, when Alan Greenspan was in charge of the central bank. Mr Wilcox, a former staff member of the Federal Reserve Board, expects Mr Powell to acknowledge there could be a case to cut rates this week but that a majority of officials favour holding them steady. 'And he'll lay out the rationale for why that is,' he said. What will Trump say? Looming against this backdrop is Mr Trump, who softened his stance on Mr Powell last week after touring the Fed's headquarters. Those attacks have ranged from calling the Fed Chair a 'numbskull' to at times publicly considering whether he should fire him. But last week's tour offered some relief for Mr Powell after Mr Trump said he did not think the unprecedented move is necessary. 'I think we had a very good meeting on interest rates. And [Mr Powell] said to me … very strongly, the country is doing well,' Mr Trump told reporters after touring the Fed. 'I got that to mean that I think he's going to start recommending lower rates.' Mr Powell has sometimes cited the economy's strength as a reason not to move on rates. The President's holiday in Scotland could give the Federal Reserve some breathing room for now, although Mr Trump has proven he can dictate the news cycle and gyrate financial markets with a push of a button.


The National
9 hours ago
- The National
US and EU strike an 'across the board' agreement on tariffs
US President Donald Trump and European Commission President Ursula von der Leyen said on Sunday they had reached a deal to end a transatlantic tariff dispute, averting the risk of a full-scale trade war. Mr Trump and Ms Von der Leyen held private talks at one of Mr Trump's golf courses in Scotland and later announced what the US President called an 'across-the-board' agreement. The breakthrough comes just days before an August 1 deadline for the European Union to strike a deal with Washington or face a sweeping 30 per cent US tariff on EU goods. 'We have reached a deal. It's a good deal for everybody,' Mr Trump told reporters. Mr Trump said the deal involved a baseline levy of 15 per cent on EU exports to the United States, the same level secured by Japan, including for the bloc's crucial auto sector, which is currently being taxed at 25 per cent. 'We are agreeing that the tariff straight across, for cars and everything else, will be a straight across tariff of 15 per cent,' he added. Mr Trump also said the bloc had agreed to purchase "$750 billion worth of energy' from the United States, as well as $600 billion more in additional investments in the country. Negotiating on behalf of the EU's 27 countries, Ms Von der Leyen's European Commission had been pushing hard to salvage a trading relationship worth an annual $1.9 trillion in goods and services. 'It's a good deal,' the EU chief told reporters, sitting alongside Mr Trump following their hour-long talks. 'It will bring stability. It will bring predictability. That's very important for our businesses on both sides of the Atlantic,' she said. The EU has been hit by multiple waves of tariffs since Mr Trump reclaimed the White House. It is currently subject to a 25 per cent levy on cars, 50 per cent on steel and aluminium, and an across-the-board tariff of 10 per cent, which Washington threatens to hike to 30 per cent in a no-deal scenario. Brussels has been focused on getting a deal to avoid sweeping tariffs that would further harm its sluggish economy with retaliation held out as a last resort.