Entrokey Labs, the three-pronged crypto threat of today

Bitcoin changed our definition of money. It created a trillion-dollar-network using proof-of work and elliptic curvature cryptography.ECC). The price has increased dramatically from $0.05 per BTC at the beginning of 2010 to $123,000 in 2021.

It is currently valued at around $118,000 with a market cap of $2.5 trillion. This places it in the sixth position as the most valuable assets on Earth, behind only Amazon (5th), Apple (4th), Microsoft (3rd), Nvidia (second) and Gold (1st).

Its power was a result of its brilliant combination with decentralisation. Everyone from crypto enthusiasts to BlackRock was interested. It will not matter if Entrokey Labs co-founders don’t address the three-pronged threat to their existence that they discovered. 

This threat could arrive sooner than most experts believe. Add to that the lethal advent of AI, the current risks, flawed entropy, and the existing dangers, and you have a recipe for disaster.

Three-pronged attack: How to defeat it

David and Eric, the brilliant software developers who developed the tools to protect our computers and national security from AI and Quantum Computing, have said that AI increases the risk by analyzing troves and troves datasets in order to detect patterns and exploit human implementation mistakes. 

David, former General Manager of Cardano Atala PRISM and CEO of Entrokey Labs says there’s a “flawed entropy” in the digital identity platform. It compounds the dangers of AI and Quantum Computing, by creating vulnerabilities in key generation and encryption.

Dresdale was the president Entrokey Labs, added to Harding’s explanation:  “The three threats making systems easier to crack. The three threats that David and I mentioned together could undermine the safety of all digital systems and networks. Data breaches, financial losses and privacy compromises can all be caused by them.

Harding and Dresdale have confirmed what has been said before. Quantum computers are capable of destroying Bitcoin’s encryption in just five years. These quantum computers will not only cause investor anxiety, but could also destroy the trust in an entire ecosystem. BlackRock’s recent Bitcoin ETF filing It is clear that quantum computing has the potential to “destroy the cryptographic basis” of a network.

Q-day is here

Are you prepared for Q-Day?” Q-Day – do you know what it is? If you don’t, you’re sleepwalking into a digital apocalypse that’s not coming—it’s already here,” David Carvalho, founder and CEO and chief Scientist at Naoris Protocol, recently wrote.

He added that Q-Day was not some theoretical event. A quantum computer can crack encryption in a fraction of the time it would take a supercomputer to do.

SHA256 is not a concern

Many crypto enthusiasts still believe that SHA-256 is a robust cryptographic hashing function. It’s used in bitcoin and other widely-used cryptographic systems. However, it could be vulnerable if hackers combine quantum computing with AI, flawed entropy and flawed entropy to break in, steal millions and then exit.

Harding says, “But SHA256’s not the problem.” It’s the key exposure that is killing us. “Reused addresses, weak randomness in embedded devices, and weak entropy on hardware wallets have already lead to stolen Bitcoin.” He adds, “AI is supercharged to find these cracks on a large scale.” Quantum’s failure to breach SHA is not the real-time attack that is taking place now.

Dresdale concurs, stating that “most people are betting on SHA256 timeline, but they’re ignoring the true problem, the keylayer.” AI can identify nonces that have been reused, flawed entropy or wallet implementations with carelessness. Quantum will eliminate what is left.

“We don’t have to wait for some hypothetical threat in the future before we take action; we are already under attack from faster and smarter pattern hunters,” warns he.

Sledgehammer and lockpick with a solution

Harding says it so plainly that anyone can understand it: “Quantum’s the sledgehammer but AI’s the lockpick.” Every flaw, every weak source of entropy and every careless key reuse become high-value targets.

Entrokey Labs has, for instance, a software-only solution to the $100 trillion problem of transitioning from quantum cryptography to post-quantum, which eliminates the need for expensive hardware replacements and saves billions in time and money, according Dresdale & Harding.

EKL’s quantum- and AI proof keys are produced in seconds by combining a high entropy random generator with a unique entropy calculation and advanced AI pattern recognition. These keys have been validated using eight computation measurements and far exceed NIST’s statistical standards.

Breaking BTC is not necessary to create a crisis

“2025 is a wake up call,” said YevheniiaBroshevan. “Cybersecurity has become more than a technical issue. It’s now a key business enabler.” When projects incorporate operational resilience and invest security, they do more than just reduce risks. They build trust and protect innovations.”

Harding and Dresdale agreed that these are the security threats we will face in the near future, not in a decade. They urged the web3 community to not continue delaying the addressing of these threats. Plus, the pair said, it’s not necessary to destroy Bitcoin in order to create a crisis.

“If AI and quantum attacks compromise wallets, exchanges or custodians the results are the same: panic. Loss of trust. And a rush for the exits.” Perception is the key to crypto security, and it’s more fragile than you think,” Entrokey Labs founders concluded. They have created a flexible software-only solution for the three-pronged threats.