Entrokey Labs: The Three-pronged Existential Threat Crypto Faces Today

Bitcoin changed really we specify money. It built a trillion-dollar web from proof-of-work and elliptic curve cryptography (ECC). The value of nan king of cryptocurrencies has risen from a specified $0.05 per BTC successful nan early 2010s to an all-time precocious of $123,000 connected July 14, 2021.

Today, it hovers conscionable astir nan $118,000 people pinch a marketplace capitalisation of $2.5 trillion, ranking remarkably successful sixth spot arsenic nan astir valuable plus connected Earth, preceded only by Amazon (5th), Apple(4th), Microsoft (3rd), Nvidia (2nd), and Gold (1st).

The superb operation of mathematics and decentralisation made it powerful. It brought successful everyone from crypto diehards to BlackRock. But nary of that will matter if nan three-pronged existential threat Entrokey Labs’ co-founders person discovered is not addressed immediately. 

And that threat is represented by quantum computing, which could sooner than experts want to judge deed afloat stride. And if you adhd that lethal advent, nan coming risks, flawed entropy and AI already represent, you person a look for world disaster.

Breaking down nan 3-pronged threat

Eric Dresdale and David Harding, co-founders astatine Entrokey Labs, break this down for greater clarity successful an exclusive question and reply pinch Euro Weekly News. They explicate that quantum computing threatens cryptography because of its expertise to lick nan astir analyzable mathematical problems successful seconds, making it tin of breaking wide utilized algorithms, specified arsenic RSA and ECC. 

AI amplifies nan risks by analysing troves of datasets to observe patterns successful cryptographic systems, and it has nan expertise to utilization quality implementation errors, said David and Eric, who person ingeniously developed nan package devices to safeguard our computers and moreover nationalist information against AI and Quantum Computing threats. 

And there’s “flawed entropy,” says David, nan CEO of Entrokey Labs and erstwhile General Manager astatine Cardano’s Atala PRISM, a sovereign integer personality platform. “It compounds nan threats of AI and Quantum Computing by creating vulnerabilities aliases weaknesses successful cardinal generations and encryption.”

Dresdale, nan president of Entrokey Labs, added to Harding’s explanation:  “The 3 threats making systems easier to crack. “Together, nan 3 threats David and I person mentioned could very good undermine nan information of cryptocurrencies, networks, and each integer systems. They tin lead to information breaches, financial losses, and discuss everybody’s privateness connected a world scale.”

Harding and Dresdale corroborate what’s been warned before. Quantum computers person nan imaginable to rip done Bitcoin’s cryptography successful 5 years aliases less. They won’t conscionable frighten wallets; they’ll rattle investor assurance and could destruct spot successful nan full ecosystem. BlackRock’s caller Bitcoin ETF filing makes it clear: quantum computing tin “wreck nan cryptographic foundation” of nan network.

Q-day is now

“Are you fresh for Q-Day? Do you moreover cognize what Q-Day is? If you don’t, you’re sleepwalking into a integer apocalypse that’s not coming—it’s already here,” David Carvalho, laminitis and CEO and main Scientist astatine Naoris Protocol, precocious wrote.

Q-Day isn’t immoderate distant theoretical event, he added. “While your astir powerful supercomputer would request billions of years to ace modern encryption that presently secures crypto wallets, blockchains, integer banking assets, and WhatsApp chats, a quantum machine could do it complete lunch.”

SHA-256 is not nan issue

While galore successful crypto still firmly judge successful SHA-256, a wide utilized cryptographic hash function, including successful bitcoin, remains robust, it faces imaginable vulnerabilities if and erstwhile hackers determine to harvester quantum computing, flawed entropy, and AI to breach, participate and exit pinch stolen millions.

“But SHA256 isn’t nan issue,” says Harding. “It’s cardinal vulnerability that’s sidesplitting us. Reused addresses, anemic entropy successful hardware wallets, and mediocre randomness connected embedded devices person already led to stolen Bitcoin.” He besides says, “AI supercharges nan expertise to find those cracks astatine scale. Waiting for Quantum to break SHA misses nan real-time breach unfolding now.”

Dresdale agrees, saying that “Most group betting connected SHA256’s timeline are ignoring nan existent problem, nan cardinal layer. AI tin already place reused nonces, flawed entropy, aliases sloppy wallet implementations, and quantum will obliterate what’s left.

“We don’t request a theoretical early threat to act; we’re already nether onslaught by faster, smarter shape seekers,” he warns.

Sledgehammer, lockpick and a solution

Harding puts it bluntly for anybody to understand: “Quantum is nan sledgehammer, but AI is nan lockpick. Every flawed wallet, each anemic entropy source, each sloppy cardinal reuse becomes a high-value target.”

Recently, Jean-Michel Azzoppardi, cybersecurity master and fintech consultant, told Euro Weekly News that, “AI has introduced a caller paradigm successful cybersecurity, fixed nan truth that generative AI is easy accessible. Tools which were erstwhile only successful nan possession of governments and large tech are now successful nan hands of mean people. By definition, that creates an inducement for abuse.

Entrokey Labs, for example, has a groundbreaking software-only solution that addresses nan $100 trillion world problem of transitioning to post-quantum cryptography, eliminating nan request for costly hardware replacements, redeeming billions of dollars successful money and time, said Dresdale and Harding.

By leveraging a high-entropy random number generator and a unsocial entropy calculator pinch precocious AI-driven shape recognition, EKL produces quantum- and AI-proof keys successful seconds, validated done 8 computational measurements, acold surpassing NIST’s 2 statistical standards, they added.

No request to break BTC to origin a crisis

Although it does not reside nan aforesaid concerns successful its latest Half-Year Web3 Security Report, to which Euro Weekly News sewage a first glance, blockchain information patient Hacken does laic bare nan compounding effect of quality fallibility, smart statement flaws, and AI-driven exploits that led web3 to suffer much $3.1 cardinal to hacks and cybersecurity breaches, overmuch much than successful nan first halft of 2025 than successful each of 2024.

“2025 has been a wake-up call,” said Yevheniia Broshevan, co-founder of Hacken. “Cybersecurity is nary longer conscionable a tech issue; it’s a business enabler. When projects merge operational resilience and put successful security, they don’t conscionable trim risk, they build spot and protect innovation.”

These are nan threats we look now, not a decade from now, Harding and Dresdale agree, while urging nan web3 organization not to proceed putting disconnected addressing these information threats. Plus, they said, you don’t really request to break Bitcoin itself to origin a crisis.

“If AI aliases quantum attacks commencement compromising wallets, exchanges, aliases custodians, nan consequence is nan same: panic, nonaccomplishment of trust, and a tally for nan exits. Perception is information successful crypto, and it is much vulnerable than group think,” nan founders of Entrokey Labs, who person developed an agile software-only solution to nan three-pronged threat, concluded.