encryption

According to CoinDesk, several researchers in the fields of post-quantum cryptography and blockchain security have stated that AI is accelerating the development of quantum computing and forcing the encryption industry to reassess the reliability of existing security systems.Project Eleven CEO Alex Pruden pointed out that researchers are using machine learning to optimize quantum error correction—one of the biggest engineering bottlenecks in the field of quantum computing. NEAR Protocol co-founder and former Google AI researcher Illia Polosukhin warned that the "harvest now, decrypt later" strategy has become a real threat, where attackers collect encrypted traffic now and decrypt it later when quantum computers mature, "this is likely already happening."Since most blockchain networks rely on the same elliptic curve cryptography as the internet, once quantum computers become powerful enough, they could theoretically derive private keys from public keys, thereby compromising wallets and systems. Researchers noted that the combination of AI and quantum computing is creating a continuous arms race in security, where security measures will no longer be static infrastructure but must continuously evolve and upgrade. Currently, multiple blockchain ecosystems such as Ethereum, Solana, and NEAR are actively promoting post-quantum cryptography migration solutions.

According to The Block, the lightweight mobile crypto wallet Sorted Wallet has completed a $4.4 million seed round financing, of which $3.4 million is equity financing, co-led by Tether and Gnosis, with participation from individual angel investors such as Movement, Angel Invest Group, and the founder of RWA.io. An additional $1 million comes from strategic support from Vox Solutions.Sorted Wallet was launched in 2022, with an installation package of only 10 MB, making it the lightest crypto wallet. It has been downloaded 500,000 times, with the fastest-growing markets including Nigeria, Kenya, Tanzania, Bangladesh, and Madagascar.

According to The Block, quantum security startup Project Eleven released a report stating that the "Q-Day," when quantum computers could break modern encryption technology, may arrive as early as 2030, with a probability of occurring before 2033 "likely exceeding 50%." The report warns that the enhancement of quantum computing capabilities will not be a linear progression but rather a leap "from nothing to something, triggered at once." Currently, approximately 6.9 million BTC (worth over $56 billion) are at risk of quantum attacks under certain conditions.In response to the aforementioned threat, several solutions have emerged in the industry: Paradigm researcher Dan Robinson proposed using timestamp proofs to help holders recover assets on future quantum-safe versions of the Bitcoin network; the BIP-361 proposal by Jameson Lopp and others suggests establishing a multi-year migration window to guide users in transferring funds to quantum-resistant addresses. Google has also advanced its quantum-resistant encryption migration target to 2029.

According to CoinDesk, the American Innovation Project (AIP), a U.S. technology policy advocacy organization, has added two policy researchers, including Jacob Smagula, who has a background in the cryptocurrency industry, to join Congressman Ritchie Torres's team to participate in legislation related to digital assets.It is reported that Smagula previously worked in the government affairs team of the Bitcoin mining company MARA and is currently engaged in policy research at the DeFi Education Fund, possessing experience in communication between the cryptocurrency industry and regulators. AIP was established in 2025 with support from organizations such as the Digital Currency Group, aiming to provide Congress members with professional insights and policy support on emerging technologies like AI and digital assets. This appointment is seen as a signal of further professionalization in U.S. cryptocurrency legislation and regulation.

According to SoSoValue data, the overall cryptocurrency market is on an upward trend, with the RWA sector performing exceptionally well, rising 4.81% in 24 hours. Among them, Pendle (PENDLE) increased by 7.39%, Centrifuge (CFG) rose by 7.17%, and Ondo Finance (ONDO) and Keeta (KTA) increased by 5.44% and 5.89%, respectively.At the same time, Bitcoin (BTC) rose by 2.36%, breaking through $79,000; Ethereum (ETH) increased by 3.5%, approaching $2,400. Other standout sectors include: the NFT sector, which rose 3.85% in 24 hours, with Pudgy Penguins (PENGU) increasing by 13.1%; the DeFi sector rose by 3.74%, with Lido DAO (LDO) increasing by 23.71%; the AI sector rose by 3.56%, with OriginTrail (TRAC) increasing by 12%.In other sectors, the Meme sector rose by 2.13%, with SPX6900 (SPX) increasing by 9.79%; the PayFi sector rose by 1.97%, with SafePal (SFP) increasing by 9.89%; the Layer2 sector rose by 1.89%, with Celestia (TIA) increasing by 4.03%; the Layer1 sector rose by 1.5%, with Algorand (ALGO) increasing by 4.16%; the CeFi sector rose by 1.23%, with NEXO (NEXO) increasing by 1.88%.The cryptocurrency sector indices reflecting historical market trends show that the ssiRWA, ssiNFT, and ssiDeFi indices rose by 6.37%, 4.24%, and 3.49%, respectively.

According to Cointelegraph, Telegram CEO Pavel Durov called WhatsApp's end-to-end encryption a "huge consumer fraud." He pointed out that about 95% of private messages ultimately end up stored in unencrypted backups on Apple and Google servers.Durov believes that this situation puts users' privacy at risk. Although WhatsApp claims that its message transmission process uses end-to-end encryption, the actual backup mechanism fails to ensure the complete encryption of user information. This statement has raised industry concerns about the privacy protection measures of mainstream messaging applications.

The crypto risk rating agency CORE3, founded by Dyma Budorin, CEO of HAI Group, a blockchain security company, officially launched on Thursday and has rated 1,426 crypto projects and 253 exchanges. World Liberty Financial, owned by the Trump family, received a D rating, with a loss probability score of 68.01, ranking among the top 50 highest-risk projects on the platform.CORE3 pointed out that the main risks of the project include: lack of continuous on-chain monitoring, failure to establish a structured bug bounty program, and the centralization issue of insiders holding the majority of tokens. CORE3 aims to promote the security of DeFi protocols and exchanges through a publicly transparent scoring method. Budorin expressed welcome for industry feedback and improvement suggestions on the rating methodology.

Members of the crypto advocacy organization Stand With Crypto have written to the U.S. Senate Banking Committee, urging the protection of decentralized finance development in the advancement of crypto legislation and the retention of provisions that allow trading platforms to offer stablecoin yields.The letter points out that a clear and fair regulatory framework should be established while avoiding the undermining of innovative financial technologies. The current legislative controversy mainly focuses on stablecoin yields and DeFi regulation, with the banking industry concerned that yield mechanisms will divert traditional deposits, while the crypto industry argues that restricting yields will stifle innovation. Additionally, the letter emphasizes the need to retain provisions related to blockchain regulatory certainty legislation, clarifying that developers who do not control user funds are not considered money transmitters. Relevant legislation is still being advanced in the Senate Banking Committee.

Galaxy Research's research director Alex Thorn posted on the X platform that the White House has released the U.S. cyber strategy document titled "President Trump's Cyber Strategy for America." This strategy consists of 7 pages and 6 main pillars, emphasizing cyber offense and deterrence, but it is relatively limited in specific implementation details. For the first time, the document explicitly mentions cryptocurrency and blockchain technology in the U.S. cybersecurity strategy, proposing the need for "protection and security assurance" for these technologies, which were not mentioned in the national cybersecurity strategy released by Joe Biden in 2023.However, the strategy also proposes to "eradicate criminal infrastructure and cut off financial exit routes," along with a new executive order to combat transnational cybercrime. Analysts believe this statement may provide a policy basis for regulators to strengthen their crackdown on mixers, privacy coins, and unregulated deposit and withdrawal channels. Additionally, the strategy suggests expanding the authority for offensive cyber operations and plans to mobilize the private sector to combat hostile networks while promoting AI-driven automated cyber defense systems. The accompanying executive order will also establish new operational units within the national coordination center to coordinate law enforcement against transnational cybercrime groups.

Quantum computing company PsiQuantum has launched the construction of a million-qubit quantum computing facility in Chicago. PsiQuantum co-founder Peter Shadbolt shared photos from the construction site on the X platform on Thursday, stating that 500 tons of steel have been erected in six days.The company previously announced in September that it had raised $1 billion to build the facility, in collaboration with chip manufacturer Nvidia, aiming to make quantum computing commercially viable to support the next generation of AI supercomputers. Scientists say that the computational power of a million qubits is equivalent to that of hundreds of billions of ordinary computers, enough to crack Bitcoin's encryption technology. Bitcoin developers are currently discussing whether to take immediate action against quantum threats through a hard fork.A preprint scientific paper released last month suggests that breaking a 2048-bit key would require about 100,000 qubits, while Bitcoin encryption uses a 256-bit key. The largest quantum computer currently comes from the California Institute of Technology, with a scale of 6,100 qubits. PsiQuantum co-founder Terry Rudolph stated in July that the company has no plans to use quantum computers to derive private keys from public keys.Research by crypto asset management firm CoinShares in February of this year pointed out that only 10,230 Bitcoins are simultaneously vulnerable to quantum threats, with wallet addresses' encryption keys publicly visible, amounting to approximately $728 million at current market prices.

According to market news, the U.S. Department of Justice has issued a statement indicating that three Silicon Valley engineers, including Samaneh Ghandali, have been charged with stealing sensitive mobile processor and encryption file secrets from Google and two other companies.According to the indictment, while employed at Google, Samaneh Ghandali allegedly transferred hundreds of files to a third-party communication platform. These stolen materials involved processor security and encryption technology, which were subsequently copied to personal devices and office equipment of other companies where the defendants were employed. Prosecutors allege that the defendants attempted to cover up their actions by deleting files, destroying electronic records, and submitting false affidavits to the victim companies. Currently, all three defendants are charged with conspiracy, theft of trade secrets, and obstruction of justice, with the obstruction of justice charge carrying a maximum sentence of 20 years in prison.

According to Financialit, the European "crypto-as-a-service" platform CheckSig announced the completion of a €3.5 million Series A funding round at a valuation of €33.5 million. To date, its total funding has reached €6.2 million. The company has obtained a MiCAR license this year and offers crypto custody, crypto trading, and cryptocurrency tax withholding services, aiming to provide secure and transparent cryptocurrency services for individual and institutional investors.

According to SoSoValue data, the cryptocurrency market sector has declined for two consecutive days, with the DePIN sector leading the drop at 4.22% over the past 24 hours. Within this sector, Filecoin (FIL) fell by 8.55%, and Golem (GLM) dropped by 10.07%. Additionally, Bitcoin (BTC) decreased by 0.74%, falling to just above $95,000, while Ethereum (ETH) remained relatively stable, down 0.21%, still hovering around $3,300.In other sectors, the CeFi sector declined by 0.37% over the past 24 hours, but NEXO (NEXO) rose by 1.13%; the Layer1 sector fell by 1.32%, with TRON (TRX) surging 2.30% during the day; the PayFi sector decreased by 2.11%, while Dash (DASH) rose against the trend by 3.50%; the Layer2 sector dropped by 2.52%, with Mantle (MNT) increasing by 0.99%; the DeFi sector fell by 2.59%, but River (RIVER) still surged by 8.12%; the Meme sector decreased by 2.93%, while MemeCore (M) rose by 1.65%.The cryptocurrency sector indices reflecting historical market trends show that the ssiGameFi, ssiDePIN, and ssiSocialFi indices fell by 4.53%, 4.26%, and 3.20%, respectively.