Bitcoin News Today: Naoris offers $120,000 bounties to break blockchain encryption standards

A cybersecurity firm called Naoris has launched a high-stakes initiative to test the resilience of cryptographic algorithms underpinning major blockchain networks. The company is offering bounties totaling $120,000 — equivalent to roughly one Bitcoin — to individuals who can break key cryptographic standards used in the crypto industry. This move underscores growing concerns over the potential risks quantum computing could pose to blockchain security.

The largest reward, $50,000, is for breaking secp256k1, the cryptographic standard that underpins Bitcoin, Ethereum, and many other protocols. A $30,000 bounty is available for breaking Ed25519, used by Solana and messaging platforms like Signal and WhatsApp. Additional rewards are offered for compromising other elliptic curve algorithms, including NIST P-256, P-224, P-384, and P-521, each playing a role in securing internet traffic and legacy systems.

According to the announcement, elliptic curve parameters define the security and functionality of cryptographic systems. A successful breach of these standards could have severe consequences, including the collapse of major blockchain networks, disruption of secure communications, and vulnerabilities in internet infrastructure.

Despite the urgency signaled by Naoris, some experts remain skeptical. Adam Back, CEO of Blockstream and cited in the Bitcoin white paper, has suggested that a quantum threat to Bitcoin is unlikely within the next decade. He noted that breaking secp256k1 would take an estimated 10 billion trillion years using current GPU technology, making such an attack highly improbable in the near future.

Still, the crypto community is taking steps to prepare for the possibility. A new Bitcoin Improvement Proposal (BIP) introduced in 2025 aims to phase out Bitcoin’s legacy signature schemes in response to quantum computing threats. The proposal highlights the potential for significant economic disruption and impact on network security should quantum attacks succeed.

In parallel, Sui Research has introduced a cryptographic framework designed to protect multiple blockchains from quantum threats without requiring hard forks or address changes. However, this solution is incompatible with Bitcoin and Ethereum, limiting its applicability across major chains. Compatible platforms include Sui, Solana, Near, and Cosmos, reflecting the ongoing divergence in quantum-resistant strategies.

As the race to secure blockchain infrastructure continues, the initiative by Naoris highlights the broader industry awareness of quantum risks and the need for proactive solutions. While quantum computing remains a distant threat, the steps taken today may determine the resilience of digital assets in the years to come.

[1] Source: [1] Bitcoin’s quantum threat: Naoris offers bounty to break crypto encryption (https://cointelegraph.com/news/bounty-to-be-paid-to-whoever-breaks-bitcoin-s-cryptography-by-naoris)