Analysis: AI Will Accelerate the Threat of Quantum Computing, Crypto Industry May Enter an Era of Continuous Security Arms Race

Multiple blockchain and post-quantum cryptography researchers have warned that artificial intelligence (AI) is accelerating the development of quantum computing and could prematurely compromise the security frameworks of mainstream blockchains, including Bitcoin and Ethereum.

Alex Pruden, CEO of Project Eleven—a company focused on quantum-resistant infrastructure—stated that the convergence of AI and quantum computing is fundamentally reshaping the future security landscape: “People will no longer be able to rely on existing security assumptions as they did in the past.”

Researchers noted that AI has already been applied to optimize quantum error correction—a critical technological bottleneck in quantum computing development. Illia Polosukhin added that AI has long accelerated scientific breakthroughs, and a self-reinforcing “circular acceleration effect” may soon emerge—where “AI helps build the next generation of quantum computers.”

One of the industry’s top current concerns is the “Harvest Now, Decrypt Later” strategy: governments or sophisticated attackers are already collecting encrypted data at scale today, intending to decrypt it en masse once quantum computing matures. Polosukhin warned that if quantum computers mature within several years, “most of today’s critical internet data could be decrypted in the future.”

Since most current blockchain networks and internet infrastructure widely use Elliptic Curve Cryptography (ECC), a sufficiently powerful quantum computer could—in theory—derive private keys directly from public keys, thereby compromising wallets and on-chain systems outright. Meanwhile, AI itself is also enhancing hackers’ capabilities. Pruden noted that AI models are becoming increasingly adept at identifying software vulnerabilities and cryptographic implementation flaws—and may even directly break certain encryption algorithms in the future.

However, developers are also leveraging AI for code auditing, formal verification, and testing post-quantum secure systems—sparking a “long-term security arms race” where both offensive and defensive capabilities evolve in tandem. Researchers believe the most profound change brought by the combined forces of AI and quantum computing is the erosion of digital era’s foundational assumption that “encryption is long-term reliable.” Future security architectures may therefore shift from “static upgrades” to continuous, dynamic evolution.

[CoinDesk]

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RichSilo Visions:

Executive Summary (TL;DR)

The convergence of AI and quantum computing is creating a doomsday clock for current blockchain cryptography, forcing an unprecedented security paradigm shift as we transition from static defenses to a continuous arms race.

The Core Friction

What we’re witnessing is the erosion of the digital era’s fundamental assumption that encryption provides long-term reliability. The blockchain industry built itself on cryptographic assumptions that are now being systematically dismantled by technological convergence. This isn’t merely an academic concern—it’s the realization that current security frameworks may become obsolete within years, not decades. The institutional players understand that the “Harvest Now, Decrypt Later” strategy means sensitive data being collected today could be compromised tomorrow, creating existential risks for legacy blockchain infrastructure.

Market Impact & Chain Reaction

Short-term

Bitcoin and Ethereum face immediate pressure as their foundational Elliptic Curve Cryptography becomes vulnerable. We’ll likely see increased volatility in these assets as market participants reassess their risk exposure. The first movers in quantum-resistant solutions, such as projects implementing lattice-based cryptography or hash-based signatures, will experience outsized attention from institutional investors seeking asymmetric upside. A tiered market reaction is inevitable, with Layer 1 protocols lagging behind in quantum readiness compared to some specialized infrastructure providers.

Mid-term

The quantum-resistant infrastructure market will emerge as a new frontier for institutional capital allocation. Projects like Project Eleven and other quantum-focused initiatives will transition from niche to essential components of institutional portfolios. Competitors with quantum-resistant architectures will gain market share, while legacy protocols face existential pressure to upgrade or risk becoming digital relics. This technological shift will create winners and losers that transcend traditional market capitalization hierarchies, rewarding technical foresight over brand recognition.

RichSilo Verdict

Smart capital should focus on identifying protocols not merely adopting post-quantum algorithms, but those rearchitecting security as a dynamic, continuously evolving system. The true winners will be projects treating security not as a one-time implementation but as a perpetual state of development. Investors should prioritize teams demonstrating both cryptographic innovation and operational agility, as the next decade will belong to those who view security not as a feature, but as a competitive advantage in perpetual motion.

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