Home Blog Page 1128

‘We need to prepare’ for quantum computing

0

Quantum computing has long been a distant, theoretical threat to blockchain cryptography. But over the past few months, that calculus has shifted rapidly.

While the Bitcoin community has been debating threats to its protocol for the past year, the Ethereum community seems to be taking its first steps in 2026.

“Quantum computing is moving from theory into engineering,” said Thomas Coratger, who leads the Ethereum Foundation’s (EF) Post-Quantum (PQ) team. “That changes the timeline, and it means we need to prepare.”

Earlier in January, the EF formally elevated post-quantum security to a strategic priority, creating tjat dedicated PQ team to drive research, tooling and real-world upgrades to protect the network’s cryptographic foundations.

At the same time, major industry players are building their own defenses: Coinbase announced an independent quantum advisory board staffed with leading cryptographers to guide long-term blockchain security planning, signaling that even custodial infrastructure must prepare for quantum-era risks.

And across the ecosystem, Optimism, which is one of Ethereum’s largest layer-2 networks, laid out a formal 10-year roadmap to transition its Superchain stack, from wallets to sequencers, toward post-quantum cryptography, committing to phase out vulnerable signatures and ensure continuity across layer-2 networks.

Together, these moves mark a noticeable shift: post-quantum security is no longer a fringe topic for the far future, but a live concern shaping development roadmaps, governance discussions and ecosystem coordination across Ethereum and beyond.

For the EF, the move toward post-quantum security isn’t about sounding an alarm, but it’s about not getting caught flat-footed.

Coratger has spent the past year quietly working on post-quantum research within the EF, before the effort was formally announced this month. The creation of a dedicated team made public what had already become a growing concern internally: if quantum computers arrive sooner than expected, Ethereum needs to be ready well before that moment.

For now, the team is focused on Ethereum’s “consensus layer” — the part of the network that enables thousands of validators to agree on which transactions are valid and which blocks are added to the chain. Today, that system relies on cryptography that works well now, but could eventually be broken by powerful quantum computers.

One of the biggest challenges is replacing Ethereum’s current signature system, which efficiently bundles thousands of validator approvals.

“That system works incredibly well today,” Coratger said. “But the post-quantum alternatives don’t have the same properties. Figuring out how to make them work at Ethereum’s scale is a major challenge.”

To address that, the foundation is building what it calls leanVM, a highly specialized piece of software designed to combine many post-quantum approvals into a single proof that can be added to the blockchain without overwhelming it. While the technology is complex under the hood, the goal is simple: keep Ethereum running smoothly even if the cryptography underneath it needs to change.

And this work is already happening in practice.

“We already have test networks running with post-quantum signatures,” Coratger said.

Importantly, Coratger stressed that Ethereum is not in immediate danger. That gap between how fast technology can change and how slowly decentralized networks can move is why the foundation is acting now. The aim is to ensure the transition is completed well before quantum computers become a real threat.

“The worst-case scenario is that quantum computers arrive and we’re not ready,” Coratger said.

One thing that has stood out to Coratger over the past year is how quickly the underlying science is advancing.

“New breakthroughs are happening all the time,” he said. “Sometimes it’s hard to keep up.”

To keep up, the Ethereum Foundation is working closely with outside researchers and developers on post-quantum efforts.

For Coratger, the takeaway is that post-quantum security has crossed an important threshold.

It’s no longer a distant thought experiment or a purely academic debate. For Ethereum, it’s becoming a long-term engineering project, one that will shape how the network evolves over time.

Read more: Ethereum Foundation makes post quantum security a top priority as new team forms

Armenia’s Fintech Awakening is an ‘Open Goal’ the UK Cannot Afford to Miss

0

Stefan Lucas, CEO and founder of industry platform FinTech Armenia, has urged the UK to capitalise on Armenia’s emerging role as a digital finance hub, describing the country as an “open goal” for British firms seeking sustainable growth and new trade partnerships.

Stefan Lucas, CEO and founder of FinTech Armenia

In a guest editorial for The Fintech Times, Lucas argues that while the UK searches for new economic allies, it often overlooks high-potential markets on the fringes of Europe. He positions Armenia not just as a former Soviet republic, but as a rapidly developing “Eurasian transit hub” for trade and technology.

A shifting geopolitical landscape

The call to action comes amid significant diplomatic developments. Lucas points to the strategic partnership signed between the UK and Armenia in August, alongside the nearing completion of an Armenia–Azerbaijan peace framework.

“When implemented, this agreement will end decades of geopolitical stasis in the region by unlocking borders, creating additional transport links, and revitalising trade,” Lucas writes.

Closing the gap

According to Lucas, Armenia is already leading the South Caucasus in digital finance and human capital. In 2024, cashless card transactions in the country reached 3.6 trillion drams (approx. $9.1bn), accounting for just over half of total transaction value.

He attributes this momentum partly to a massive influx of talent. “This advantage expanded significantly in 2022–23, when thousands of developers, data scientists, fintech and AI professionals relocated from Russia, Belarus, Ukraine and Israel,” he notes. “Many stayed. Banks hired them, startups absorbed them, and new fintech and AI companies were founded as a result.”

Lucas also highlighted the proactive stance of the Central Bank of Armenia (CBA), which has adopted a sandbox-style approach to regulation. The country is currently running pilot projects exploring open banking, digital identity, and blockchain, with plans to test central bank digital currencies (CBDCs) in the next 12 to 24 months.

Three priorities for the UK

Lucas outlines three key steps for British firms and policymakers:

  1. Establish a presence now: Investors should enter while the ecosystem is young enough for capital and expertise to have “shaping power”.
  2. Embed fintech in diplomacy: Fintech and AI should be central to the UK–Armenia Strategic Partnership to deepen cooperation on regulation and AML compliance.
  3. Early engagement: Practical trade missions and pilot projects are essential to build trust and identify credible partners.

“For the UK, Armenia offers something increasingly rare: a well-regulated test market with regional scale-up potential which is opening to the world just as geopolitical barriers are falling away,” Lucas concludes. “Those who engage early will help shape the market, and those who wait will simply compete in it.”

US Winter Storm Hits Bitcoin Miner Production, Data Shows

0

New data is providing a clearer picture of how January’s US winter storm affected Bitcoin mining operations, showing that daily production among publicly traded miners dropped sharply during the disruption.

The storm swept across large parts of the continental United States, prompting miners to curtail operations amid grid stress, snow, ice and extreme cold, and highlighting how closely mining activity is now tied to energy market conditions.

Daily production among publicly traded miners tracked by CryptoQuant typically averaged between 70 and 90 Bitcoin (BTC) in the weeks leading up to the storm, before falling to roughly 30 to 40 BTC per day at the height of the disruption, according to data shared by CryptoQuant head of research Julio Moreno.

Source: Julio Moreno

Production later showed partial signs of recovery from its lows as weather conditions improved, suggesting the pullback reflected temporary and largely voluntary curtailments.

Previous Cointelegraph reporting examined how the storm coincided with a decline in US Bitcoin hashrate and a rally in mining stocks. The latest production data adds further detail on the extent of the operational disruption.

The miners tracked by CryptoQuant include Core Scientific (CORZ), Bitfarms (BITF), CleanSpark (CLSK), MARA Holdings (MARA), Iris Energy (IREN) and Canaan (CAN), which also operates a self-mining business.

Among them, miners with major US operations include Core Scientific, CleanSpark, Marathon, Riot Platforms, TeraWulf and Cipher Mining.

Related: Bitcoin hashrate briefly drops to mid-2025 levels amid US winter storm

A more challenging environment for miners

The winter storm disruption comes as Bitcoin miners are already navigating a difficult operating environment, illustrating how external shocks can compound existing pressures on the sector.

While miners have long been recognized for their ability to help stabilize power grids through load balancing and demand response, broader economic and market conditions have weighed heavily on profitability. Declining Bitcoin prices and network hashrate, combined with steadily rising operating costs throughout 2025, have tightened margins across the industry.

Last year, industry publication The Miner Mag described the situation as the “harshest margin environment of all time,” citing elevated energy costs, capital constraints and post-halving revenue compression.

Cointelegraph previously reported that these pressures are expected to intensify heading into 2026, as miners grapple with thinner margins, consolidation and a growing shift toward artificial intelligence and high-performance computing as alternative revenue streams.

Related: Crypto’s 2026 investment playbook: Bitcoin, stablecoin infrastructure, tokenized assets