The Cryptogeddon of Blockchain
Designing policy recommendations for public blockchains to transition towards a quantum-safe environment
Y. Sezer (TU Delft - Technology, Policy and Management)
Y. Zhauniarovich – Mentor (TU Delft - Organisation & Governance)
H.G. van der Voort – Coach (TU Delft - Organisation & Governance)
J. Ubacht – Graduation committee member (TU Delft - Information and Communication Technology)
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Abstract
Since Bitcoin’s genesis block validated the concept of blockchain technology, the domain has experienced rapid growth and innovation. While mass adoption remains a challenge, numerous applications have demonstrated substantial potential, establishing blockchain as a leading frontier of technological advancement. Originally emphasizing decentralization and individual freedom without external interference, the space is gradually shifting due to mainstream institutional adoption and increasing retail and institutional investments. Consequently, the debate around regulation has intensified, raising the central question: “For what reasons, and to what extent, should one regulate the blockchain domain?”
This research addresses this question within the context of the emerging quantum threat to blockchain. Quantum computing capabilities are progressing exponentially, surpassing Moore’s Law in computational growth, and are expected to reach the level of Cryptographically Relevant Quantum Computers (CRQCs) within the coming decade(s). At this stage, quantum algorithms such as Shor’s and Grover’s will threaten existing public-key cryptography, including blockchain security. Failure to transition to quantum-safe protocols risks undermining trust, destabilizing infrastructure, and compromising user funds. Therefore, preparing for a quantum-secure blockchain environment is critical.
The objective of this research is to provide an overview of recommendations that support blockchain’s timely transition to quantum safety. Recommendations encompass regulatory and policy guidance, technical strategies, and community engagement approaches. The methodology combines literature review, secondary data analysis, market analysis, case studies, and expert interviews. The technical chapter explores post-quantum cryptography options, evaluating trade-offs and considerations for integration into existing blockchain architectures, culminating in a technical framework for practitioners.
The organizational perspective analyzes blockchain governance, including decentralized change mechanisms and stakeholder influence. A market analysis of the top 100 cryptocurrency projects assessed their quantum-awareness, research activities, and adoption of mitigation strategies, forming the basis of the N.A.R.A.Q. framework. Additionally, 30 interviews with blockchain founders, project leads, CEOs, CTOs, cybersecurity experts, and post-quantum cryptosystem designers provided insights into the perceived threats, regulatory perspectives, barriers, and enablers for transitioning to quantum safety.
The study integrates these findings into actionable recommendations, proposing the Quantum-Secure Stamp of Approval (QSSA) and an enhanced N.A.R.A.Q. framework. The implications for Non-Quantum-Secure Blockchain Technologies (NQSBTs) are addressed, alongside policy recommendations targeting regulators, stakeholders, and the broader blockchain community. The research emphasizes collaborative efforts and external institutional support while analyzing key obstacles and barriers to adoption.
Ultimately, the study highlights the delicate balance between regulation and innovation. While regulatory frameworks can protect users and investors, overregulation or lack of technological understanding may hinder innovation. The findings aim to guide policymakers and blockchain stakeholders in facilitating a smooth transition to a quantum-safe environment, ensuring security, trust, and continued technological progress. By providing a foundation for discussion, this research contributes to strategic planning for the future of blockchain in a post-quantum era.