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AI Threatens Bitcoin's Quantum Plans by Weakening Key Algorithms

Anthropic's AI model has revealed a significant vulnerability in the HAWK digital signature scheme, prompting urgent discussions about quantum-resistant cryptography.

Mercation Admin
July 30, 2026 2 min read
AI Threatens Bitcoin's Quantum Plans by Weakening Key Algorithms

A vulnerability in the HAWK digital signature scheme has been revealed by Anthropic's Claude Mythos Preview model, potentially jeopardizing its future role in online banking and payments. This flaw effectively halves the key strength of HAWK, raising alarm bells about its adequacy in an era dominated by quantum computing.

HAWK's Development Faces New Challenges Amidst AI Threats

The recent AI-assisted attack, which required approximately 60 hours and $100,000 in computing resources, has significantly lowered the effort needed to breach HAWK's smallest parameter set, going from about 2^64 to just 2^38 operations. This development puts into question the effectiveness of employing larger key sizes as a compensatory measure.

While current digital signatures used in cryptocurrencies like Bitcoin and Ethereum remain safe against this particular risk, the findings highlight the pressing need for these systems to adopt quantum-resistant cryptography. Ongoing discussions must consider the implications of advancing cryptographic threats.

Anthropic's Claude model successfully pinpointed the vulnerabilities in HAWK, a signature candidate that had passed extensive evaluations without prior issues. Digital signatures are critical for confirming message origins and ensuring the security of cryptocurrency transactions.

Although HAWK has yet to be implemented in real-world applications, it is being evaluated as a potential alternative to existing digital signatures, which are likely to fall prey to quantum attacks. The current systems are vital for securing Bitcoin transactions and website operations.

Bitcoin Improvement Proposal (BIP) 360 seeks to introduce quantum-resistant addresses for Bitcoin, utilizing three already standardized algorithms by NIST. Meanwhile, BIP-361 emphasizes the need for rapid transition due to the accelerating pace of cryptographic attacks, which are reportedly enhancing up to 20 times faster.

Anthropic's research indicates that the cost to exploit HAWK's smallest parameters has been drastically cut, although larger keys are still secure from attacks. However, increasing the key sizes to counter this vulnerability could nullify many of HAWK's initial benefits.

The findings were shared with HAWK's developers in June, and the information was also circulated through NIST's mailing list. The research has also led to enhanced attacks on a weakened version of AES, the standard encryption method for wallet security, multiplying the attack's effectiveness by factors of 200 to 800.

Notably, the Claude model also demonstrated improvements against Poseidon, a crucial hash function for zero-knowledge proofs supporting various privacy protocols in the cryptocurrency realm. These advancements coincide with recent updates to the privacy-focused network Zcash, which has rolled out a new shielded pool designed to endure potential quantum computer threats. As development proceeds, these cryptographic methods will be under increasing scrutiny from AI-driven analytical tools that could surpass their growth and application timelines.