The report notes cryptocurrencies cannot update encryption via patches and public keys remain permanently exposed on blockchains, increasing long-term vulnerability.

Authored by Quantus, a Layer-1 focused on protecting crypto from quantum threats, the report notes advances in quantum hardware make cryptographic attacks more imminent.

Industry discussions focus on migration strategies for quantum-resistant signatures, emphasizing governance, scaling, and compatibility and favor gradual, hybrid transitions over abrupt changes.

Bitcoin is trading around $73,500 in the period covered by the report.

An estimated 2.3 million to 3.7 million Bitcoin wallets could be inaccessible and non-migratable to quantum-resistant addresses, risking permanent loss when attacks become feasible.

Hardware limits challenge wallets because larger post-quantum schemes require more memory and computing power, affecting wallet design and user experience.

Industry preparation varies: NIST has standardized post-quantum encryption, and firms like Google, Signal, Apple, and Cloudflare are deploying post-quantum protections with migration targets around 2029–2030.

Some propose hard deadline migrations to quantum-safe accounts to avoid lingering vulnerabilities, warning that tokens in accounts not migrated could be permanently frozen.

A suggested remedy is a firm deadline for token migration to quantum-safe accounts, after which un migrated tokens would be frozen to mitigate risk.

Experts caution that rushing migration could induce bugs; a gradual, hybrid transition is favored to balance risk mitigation with preparedness for a quantum era.

A new report argues the quantum threat to crypto is now practical, with public-key exposure on blockchains creating an 'harvest now, crack later' risk that could enable future attacks once powerful quantum computers exist.

Recent breakthroughs by Google, IBM, and Quantinuum suggest lower quantum resources needed to break elliptic-curve cryptography, accelerating the timeline for potential attacks.