{"id":78599,"date":"2026-09-24T10:42:18","date_gmt":"2026-09-24T10:42:18","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/web3-told-to-add-spending-caps-and-circuit-breakers-onchain\/"},"modified":"2026-09-24T10:42:18","modified_gmt":"2026-09-24T10:42:18","slug":"web3-told-to-add-spending-caps-and-circuit-breakers-onchain","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/web3-told-to-add-spending-caps-and-circuit-breakers-onchain\/","title":{"rendered":"Web3 Told to Add Spending Caps and Circuit Breakers Onchain"},"content":{"rendered":"<p><b>(Originally posted on : Bitcoin News )<\/b><br \/>\n<\/p>\n<div>\n<div class=\"@container mb-[25px] rounded-sm overflow-clip py-0.5 pr-0.5 pl-2.5 bg-success-100\">\n<div class=\"flex flex-col gap-m overflow-clip rounded-[6px] !bg-success-10 p-3 @[420px]:p-m\">\n<h2 class=\"m-0 flex items-center gap-s text-[19px] !text-[#1c1c1c] md:text-[20px]\"><svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"16\" height=\"10\" viewbox=\"0 0 16 10\" fill=\"none\" class=\"shrink-0 text-success-100\" aria-hidden=\"true\"><path d=\"M1 1.5h14\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><path d=\"M1 8.5h10\" stroke=\"currentColor\" stroke-width=\"2.5\" stroke-linecap=\"round\"\/><\/svg><span>Key Takeaways<\/span><\/h2>\n<ul class=\"m-0 flex list-none flex-col gap-m pl-0\">\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">European Supervisory Authorities warn quantum computing threats could compromise EU blockchain data by 2026.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Bitcoin, Ethereum, and Solana face signature upgrades as bad actors harvest data today for future decryption.<\/span><\/li>\n<li class=\"m-0 flex items-start gap-s !text-[#434248]\"><span class=\"mt-2 size-2 shrink-0 rounded-full bg-success-100\" aria-hidden=\"true\"\/><span class=\"text-body\">Cysic founder Leo Fan urges Web3 protocols to deploy automated onchain circuit breakers against AI threats.<\/span><\/li>\n<\/ul>\n<\/div>\n<\/div>\n<h2>EU Regulators Issue Post-Quantum Cryptography Warning<\/h2>\n<p>European Union regulators have warned that advanced quantum computers could <a href=\"https:\/\/news.bitcoin.com\/a-quantum-computer-could-one-day-break-crypto-security-coinbase-is-preparing-now\/\">undermine cryptographic systems<\/a> widely used to secure databases and blockchains. In a <a href=\"https:\/\/www.esma.europa.eu\/sites\/default\/files\/2026-09\/JC_2026_29_JC_update_on_risks_and_vulnerabilities_autumn_2026.pdf\" target=\"_blank\" rel=\"noopener noreferrer\">Joint Committee update<\/a>, the regulators, known as European Supervisory Authorities (ESAs), added that threats posed by such computers \u201ccould materialize earlier than any viable commercial application.\u201d<\/p>\n<p>Officials also believe threat actors are actively engaging in \u201charvest now, decrypt later\u201d strategies, intercepting and storing encrypted onchain traffic today to decrypt once quantum hardware scales. To stay ahead of these risks, the EU\u2019s <a href=\"https:\/\/www.eiopa.europa.eu\/digital-operational-resilience-act-dora_en\" target=\"_blank\" rel=\"noopener noreferrer\">Digital Operational Resilience Act<\/a> (DORA) mandates that financial entities \u201cadopt state-of-the-art cryptography against new threats.\u201d<\/p>\n<p>Consequently, regulators are calling on financial entities to begin transitioning away from legacy cryptographic solutions and toward quantum-resistant algorithms. Additionally, the EU NIS Cooperation Group recommended that member states adopt a post-quantum cryptography migration strategy by the end of 2026.<\/p>\n<h2>Layer 1 Blockchains Face Urgent Migration Deadlines<\/h2>\n<p>Although the precise timeline for quantum computing to break standard blockchain encryption remains a subject of debate, regulators\u2019 warnings serve as an urgent wake-up call for developers. The risk is particularly acute for networks that pair exposed public keys with rigid upgrade paths, including major Layer 1 blockchains such as Bitcoin, Ethereum, and Solana.<\/p>\n<p>Leo Fan, founder of Cysic, pointed out the extended timeline required to safely <a href=\"https:\/\/news.bitcoin.com\/blockchain\/vitalik-overhauls-ethereum-roadmap-as-quantum-risks-take-hold\/\">implement quantum-resistant schemes<\/a> across these blockchain networks.<\/p>\n<p>\u201cThe highest-risk designs combine exposed, quantum-vulnerable public keys with difficult upgrade paths. Bitcoin, Ethereum, and Solana all need signature upgrades; proof-of-stake networks must also address validator signatures,\u201d Fan told Bitcoin.com News. \u201cPost-quantum signature standards already exist, so deployment can begin now. Migrating entire networks is a multi-year project, not a switch to flip when quantum attacks arrive.\u201d<\/p>\n<h2>Zero-Knowledge Frameworks Require Immediate Action<\/h2>\n<p>Asked whether decentralized storage protocols and privacy-focused blockchains should alter their <a href=\"https:\/\/www.bitcoin.com\/get-started\/what-is-the-difference-between-zk-rollups-and-optimistic-rollups\/?_gl=1*1dt8dyu*_gcl_au*OTk5NTQzMjAuMTc4OTMyOTIwMQ..*_ga*MTU3OTQwMTMwLjE3NzM3NjQ2MDc.*_ga_ERLPF60ZDD*czE3OTAyNDA3ODckbzgwNSRnMCR0MTc5MDI0MDc4NyRqNjAkbDAkaDA.\" target=\"_blank\" rel=\"noopener noreferrer\">zero-knowledge proof<\/a> frameworks or encryption standards today given the early arrival of decryption risks, Fan urged immediate action on long-term data.<\/p>\n<p>\u201cYes, prioritize data that must remain confidential for years,\u201d Fan emphasized, noting that protocols must upgrade vulnerable key exchange and key wrapping using vetted post-quantum schemes while evaluating proof systems independently. \u201cElliptic-curve-based proofs can be vulnerable; properly designed hash-based STARKs offer a path forward. \u2018Zero knowledge\u2019 does not automatically mean \u2018quantum safe,\u2019 and future upgrades cannot rescue vulnerable ciphertext already harvested.\u201d<\/p>\n<h2>AI-Driven Exploits Demand Onchain Circuit Breakers<\/h2>\n<p>Meanwhile, the ESAs\u2019 update also flags rapid advances in artificial intelligence (AI) as potentially enabling cybercriminals to <a href=\"https:\/\/news.bitcoin.com\/featured\/ai-is-rereading-cryptos-old-code-and-finding-what-humans-missed\/\">exploit system weaknesses<\/a> at unprecedented speed, making it harder for market players to respond in time. While the report recommends maintaining strong operational resilience and cybersecurity controls, Fan urged Web3 and decentralized protocols to move beyond basic dashboards for incident response.<\/p>\n<p>\u201cDesign custody so one convincing message [alone] cannot move funds. Use hardware-backed keys, independent multisig signers, and transaction verification outside the requesting chat or app,\u201d Fan advised, warning against using familiar voices or faces for authorization.<\/p>\n<p>However, as AI models become more sophisticated, they are increasingly capable of bypassing standard security measures. Consequently, protocols must implement automated, onchain defenses to contain autonomous exploits before funds are drained.<\/p>\n<p>\u201cPut the limits in contracts, not prompts. Give agents narrowly scoped, expiring permissions and cumulative spending caps. Add protocol-wide outflow limits and circuit breakers that reject limit-breaching transactions,\u201d the Cysic founder said, warning that off-chain alerts alone cannot stop an exploit that drains a pool in a single transaction.<\/p>\n<\/p><\/div>\n<p><a href=\"https:\/\/news.bitcoin.com\/security\/ai-threat-web3-told-to-add-spending-caps-and-circuit-breakers-onchain\/\">Source link <\/a><br \/>\n<br \/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Originally posted on : Bitcoin News ) Key Takeaways European Supervisory Authorities warn quantum computing threats could compromise EU blockchain data by 2026. Bitcoin, Ethereum, and Solana face signature upgrades as bad actors harvest data today for future decryption. Cysic founder Leo Fan urges Web3 protocols to deploy automated onchain circuit breakers against AI threats. [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":78600,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0},"categories":[32],"tags":[],"_links":{"self":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78599"}],"collection":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/comments?post=78599"}],"version-history":[{"count":0,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/posts\/78599\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media\/78600"}],"wp:attachment":[{"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/media?parent=78599"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/categories?post=78599"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crowdfundjunction.com\/blog\/wp-json\/wp\/v2\/tags?post=78599"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}