Algorand quietly beat Bitcoin and Ethereum due to quantum risks

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Algorand has emerged as a standout in the latest quantum security debate in the crypto market, following a recent Google Quantum AI paper highlighting the blockchain as an example of post-quantum cryptography in action.

The focus on Algorand came as concerns were raised about Bitcoin and Ethereum, with their size, age, and design choices potentially complicating any future migration to quantum-resistant infrastructure.

Amidst this backdrop, Algorand’s work on Falcon digital signatures, state proofs, and key rotation gained attention as a practical head start rather than just a technical experiment.

This shift in focus led to a significant increase in Algorand’s token value over the past week, with traders viewing the Google paper as validation of the network’s ongoing efforts.

According to CryptoSlate’s data, ALGO, the native token of the Algorand network, has been one of the top performers in the past week, rising by approximately 50% to reach $0.12 at the time of writing. This price surge occurred shortly after the token hit an all-time low of $0.08.

Algorand’s Lead in Quantum Computing Over Bitcoin and Ethereum

Algorand’s quantum computing advantage over Bitcoin and Ethereum may not be as extensive as some believe, but it is more tangible than what many other larger chains can demonstrate.

In its paper, Google cited Algorand as a real-world example of implementing post-quantum cryptography on a blockchain vulnerable to quantum attacks.

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The acknowledgment was significant as it didn’t claim Algorand had completely solved the issue, but rather highlighted a network that had progressed from theory to practical implementation.

Despite Algorand’s core consensus and transactions relying on Ed25519, which is still vulnerable in advanced quantum scenarios, the network has implemented Falcon digital signatures for smart transactions and state proofs. These cryptographic attestations are used to verify blockchain state across chains. Additionally, Falcon verification is available as a tool for developers using the Algorand Virtual Machine, giving the ecosystem functional tools rather than just a roadmap.

In 2025, the network conducted its first post-quantum-secured transaction, a milestone that distinguished it from many larger competitors still deliberating design paths, governance trade-offs, and implementation timelines.

Algorand also enables users to rotate the private keys linked to their accounts, a feature that doesn’t eliminate the underlying threat but could facilitate future migrations.

This combination of live transaction capability, developer tools, state-proof support, and key rotation is what drew attention to Algorand as the Google paper circulated throughout the industry.

In an industry where discussions about quantum risk often remain theoretical, Algorand stands out for having infrastructure already in operation.

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Quantum Computing Risks for Bitcoin and Ethereum

Bitcoin faces not only the possibility of quantum computers deriving private keys from public data but also the challenge of migrating a significant portion of its legacy infrastructure in time.

The paper stated that a quantum computer with fewer than 500,000 physical qubits could potentially crack the elliptic-curve cryptography protecting Bitcoin wallets, a much lower threshold than previous estimates in the millions.

Although Google’s most advanced chip, Willow, is far from reaching that level, the revised estimate has prompted scrutiny of how much of Bitcoin’s ecosystem could be at risk if quantum technology advances rapidly.

The challenge is particularly daunting as some of Bitcoin’s oldest addresses reveal public keys on-chain.

The paper mentioned an estimated 6.7 million BTC in older Pay-to-Public-Key addresses, including coins linked to Bitcoin’s creator, Satoshi Nakamoto.

Even beyond these legacy wallets, the task of migration is complex for a network that values backward compatibility and proceeds cautiously with base-layer changes.

In the case of Bitcoin, quantum risk is not just a cryptographic issue but also a governance and coordination challenge.

On the other hand, Ethereum’s exposure to quantum computing risks is more extensive.

Once an Ethereum user initiates a transaction, the associated public key becomes permanently visible on-chain. The paper noted that the top 1,000 Ethereum wallets, holding approximately 20.5 million ETH, could be vulnerable to advanced quantum attacks.

The paper also identified at least 70 significant contracts with administrator keys visible on-chain, which control more than just the ETH they hold directly, including authority over stablecoin minting and other critical system functions.

Furthermore, the vulnerability extends beyond wallets and contract administrators.

Ethereum’s proof-of-stake validator set, major Layer 2 networks, and aspects of its data-availability architecture all rely on cryptographic components deemed vulnerable by the paper.

With around 37 million ETH staked and a substantial portion of transactions flowing through rollups and bridges that inherit assumptions from the base layer, any comprehensive post-quantum migration would need to involve not just users and validators but also the network of applications and scaling solutions built around them.