Camila Russo & yyc trader
April 01, 2026

gm, Defiers!

Today’s top story:

Two research papers dropped this week, sparking renewed fears about quantum computers breaking Bitcoin. How much of it is true and how much is FUD?

In other news:

Drift Protocol vault gets drained
Franklin Templeton launches dedicated crypto division
Bitcoin reclaims $68,000
Enterprises Are Finally Moving Their Businesses Onchain: RJ Catalan of Aligned [MEDIA PARTNER]

Read more below! But first, please give our sponsors some love; they make this newsletter possible.

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We’re back! Here’s what you need to know in web3 today

📈 Markets in the Past 24 Hours

TICKER	VALUE	24H
Bitcoin	$68,107	0.27 %
Ethereum	$2,138.61	1.77 %
BNB	$611.76	-0.73 %
XRP	$1.35	0.10 %
Solana	$82.88	-0.08 %

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🎬WATCH

The DeFi Exploit That Exposed a Bigger Problem

In this episode of The Defiant Podcast, Cami sits down with Omer Goldberg, founder of Chaos Labs.

A new DeFi exploit triggered millions in losses, but the deeper story is about risk. Goldberg explains how the attack unfolded, why the damage spread across lending markets, what vault curators got wrong, and whether DeFi is truly ready for mainstream adoption.

Watch the full interview:

Today’s Big Story

I Didn't Know Anything About Quantum Risk to Crypto. Here's What I Learned.

Two research papers dropped this week, one from Google, one from a Caltech team, and my timeline filled with people losing their minds about quantum computers breaking Bitcoin. How much of it is true and how much is FUD?

To find out, I spoke with Alex Pruden, co-founder and CEO of Project 11, a company at the intersection of cryptography and quantum computing. I went in skeptical and came out genuinely unsettled. Here's what I learned (watch out for the full interview on The Defiant podcast in the next couple of days. Subscribe: LINK)

The threat is real, and these papers made it more urgent

The two papers significantly shrunk the estimated resources needed to break the cryptography underlying essentially every blockchain. Google reduced the operations required to run Shor's algorithm — the quantum attack on public key cryptography — from tens of billions down to roughly seven million. The Caltech team reduced the physical qubits needed to just 10,000. For context, a quantum computer at Caltech already has 6,000.

The good news is, these are still theoretical constructions, not existing machines.

Why this is existential

Alex made the point that the attack would crack the core concept of ownership in crypto. When you "own" Bitcoin or ETH, you hold a private key, which you don’t disclose, and a public key. A quantum computer running Shor's algorithm can take your public key, which is visible on-chain the moment you transact, and reverse-engineer your private key.

"If I have a quantum computer," Alex told me, "in some sense I own everyone's crypto."

The underlying target is ECDSA, the elliptic curve digital signature algorithm that is the common cryptographic foundation for virtually every blockchain. Bitcoin and Ethereum use the exact same curve. This is everyone's problem.

The timeline is uncertain

Project 11's models put a 50/50 chance of a cryptographically relevant quantum computer around 2032, with a possible floor of 2029. Google is migrating its own cryptography by 2029. The NSA has given U.S. agencies a hard deadline of 2030.

But we don't know what Google or the NSA actually know. Quantum capability is exactly the kind of advance that labs and nation-states have every incentive to keep quiet; after all, they could be trying to read adversary communications or quietly recover Satoshi's Bitcoin.

Alex argued that even if there's only a 15–20% chance this hits on the aggressive timeline, the consequences of being unprepared are catastrophic enough to act now. "I wear a seatbelt not because I think there's a 15% chance I'll get in a car wreck."

Solutions exist, but none are easy

Post-quantum cryptography has been in development for decades, and the U.S. standardized the first replacement algorithms for ECDSA last year. Some can even be implemented in Ethereum smart contract wallets today, before any protocol-level upgrade. Project 11 is launching a post-quantum vault for exactly this purpose in the coming weeks.

The catch: the new algorithms are a meaningful downgrade in other ways. They need larger signatures, are missing multi-sig and MPC support, and have slower performance. Some won't even fit in older Ledger hardware wallets. Every bridge, wallet, and piece of infrastructure under MetaMask, Coinbase, and Anchorage would need to be rebuilt. This is Ethereum-merge-scale work, across every chain, against an uncertain deadline.

According to Alex, of all the major ecosystems, the Ethereum Foundation is furthest ahead with post-quantum now formally on the roadmap. But no chain has done enough.

The first step in solving a problem is admitting you have one. This week's papers seem to have finally forced that admission. Better late than never, but only if we don't stop there.

With love,

Cami, The Defiant founder