Bitcoin’s quantum threat: Naoris offers bounty to break crypto encryption

Naoris, a cybersecurity firm specializing in protecting digital assets from quantum computing threats, has announced a bounty program offering up to $120,000 for anyone who can break the cryptographic algorithms securing major blockchain networks. The bounty, equivalent to approximately one Bitcoin, incentivizes researchers to compromise key cryptographic standards widely used in the crypto industry. The largest reward of $50,000 is for breaking secp256k1, the elliptic curve algorithm underpinning Bitcoin, Ethereum, and many other protocols. Additional rewards include:

• $30,000 for breaking Ed25519, used by Solana and encrypted messaging apps like Signal and WhatsApp.
• $20,000 for breaking NIST P-256, the elliptic curve securing Transport Layer Security (TLS) internet traffic.
• $10,000 for breaking other elliptic curves such as P-224, P-384, and P-521.

The Impact of Breaking Cryptography

The bounties focus on breaking elliptic curve parameters, which define the security and functionality of cryptographic systems. If compromised, the consequences would be severe:
• Breaking secp256k1 would jeopardize Bitcoin, multiple blockchains, the Lightning Network, and many Ethereum layer-2 solutions. Current estimates suggest breaking this algorithm with today’s GPU technology would take around 10 billion trillion years.
• A successful attack on Ed25519 would threaten OpenSSH secure server access, Git version control systems, and parts of the DNS security layer.
• NIST P-224 is mostly used in legacy systems and is expected to be deprecated after 2030. It is significantly easier to break than 256-bit curves like secp256k1.

Quantum Computing: An Emerging Threat

While quantum computers capable of breaking modern cryptography are not expected imminently, experts agree it is a matter of when, not if. Quantum computers would need tens of millions of qubits to break these systems, but the crypto community has begun preparing for this eventuality. Bitcoin is taking initial steps to mitigate this risk. A new Bitcoin Improvement Proposal (BIP) introduced in July 2025 aims to phase out legacy signature schemes vulnerable to quantum attacks. The proposal warns that a successful quantum attack could cause significant economic disruption and undermine network security. Adam Back, early cypherpunk and Bitcoin white paper cited figure, suggested in an April 2025 interview that quantum computing pressure might reveal whether Bitcoin’s pseudonymous creator, Satoshi Nakamoto, is still active. Quantum attacks could force Satoshi to move his Bitcoin holdings to protect them.

Blockchain-Agnostic Quantum Solutions

Researchers are also pursuing solutions that protect multiple blockchains without requiring disruptive changes like hard forks or address updates. Recently, Sui Research introduced a cryptographic framework compatible with EdDSA-based blockchains such as Sui, Solana, Near, and Cosmos. However, this solution currently excludes Bitcoin and Ethereum.

Conclusion

Naoris’s bounty program highlights the growing urgency to address quantum computing threats to blockchain security. By incentivizing breakthroughs in cryptanalysis, the initiative aims to accelerate the development of quantum-resistant cryptographic methods and safeguard the future of digital assets.

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Frequently Asked Questions (FAQ) Q: What is the purpose of Naoris's bounty program? A: The bounty program aims to incentivize researchers to find vulnerabilities in the cryptographic algorithms securing major blockchain networks, specifically focusing on elliptic curve cryptography. This is a proactive measure to identify and address potential weaknesses before they can be exploited, particularly in anticipation of quantum computing threats. Q: Which cryptographic algorithms are targeted by the bounty program? A: The program targets algorithms like secp256k1 (used by Bitcoin and Ethereum), Ed25519 (used by Solana and messaging apps), and NIST P-256, as well as other elliptic curves such as P-224, P-384, and P-521. Q: What are the potential consequences if these cryptographic algorithms are broken? A: If secp256k1 is broken, it could compromise Bitcoin, numerous other blockchains, the Lightning Network, and many Ethereum layer-2 solutions. An attack on Ed25519 could affect secure server access and version control systems. NIST P-224, used in legacy systems, is considered easier to break than the 256-bit curves. Q: How is the crypto industry preparing for quantum computing threats? A: The crypto community is beginning to prepare by exploring quantum-resistant cryptographic methods. Bitcoin, for example, is considering a BIP to phase out vulnerable legacy signature schemes. Q: Are there any blockchain-agnostic solutions being developed for quantum threats? A: Yes, researchers are working on solutions that can protect multiple blockchains simultaneously. Sui Research has introduced a framework compatible with EdDSA-based blockchains like Sui, Solana, Near, and Cosmos, though it currently excludes Bitcoin and Ethereum.

Crypto Market AI's Take

This initiative by Naoris underscores the critical importance of cryptographic security in the blockchain space, especially with the looming threat of quantum computing. As AI capabilities advance, the potential for sophisticated attacks also increases. Our platform, AI Crypto Market, is dedicated to staying at the forefront of both innovation and security in the digital asset world. We are actively developing and integrating advanced AI-driven security measures and research into quantum-resistant technologies to safeguard user assets and the integrity of the market. Understanding and addressing these cryptographic challenges is paramount to ensuring the long-term viability and trustworthiness of decentralized systems. For more on the evolving landscape of crypto security and AI, explore our insights on AI Agents in Cybersecurity and our latest Market News.

More to Read:

• AI Crypto Market Platform - LLM Training Data
• AI Agents: Capabilities, Risks, and Growing Role
• Understanding Blockchain: A Comprehensive Beginner-Friendly Guide

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Originally published at Cointelegraph on Thu, 31 Jul 2025