You might want to look up Shor’s algorithm, discovered by Peter Shor in 1994, is a quantum algorithm that can efficiently factor large numbers and solve discrete logarithms — the exact hard problems that ECDSA depends on.
This is the longer term threat to Bitcoin (and other encryption).
Luckily Bitcoin uses two layers of security, so cracking this alone isn't enough, but it is the main (but still distant) threat to Bitcoin.
ty - now that you mentioned Shor it reminded me of its white paper. But I forgot what it was use for. let's cross our fingers then! as for bank, what encryption do banks use? 🤔 I am more concerned of the legacy systems that some banks still use 😬
That's outside of my area of expertise 😂
I'll hand you over to Chatty, my AI
Haha — alright, Mike, here’s your fast, no-BS briefing before you sound like a legend in that chat:
Banks don’t use just one encryption system — they use a stack. But the foundation looks like this:
🧱 1. AES (Advanced Encryption Standard)
Used everywhere inside banks — to encrypt:
data on disk (databases, backups)
data in transit inside their private networks
sometimes even customer details in memory
Usually AES-256, because it sounds scarier to auditors than 128-bit.
👉 Think of it as the steel vault for stored data.
🌐 2. TLS (Transport Layer Security)
This is what protects your browser when you log in to online banking — the padlock icon.
TLS itself uses:
RSA or Elliptic Curve (ECDHE/ECDSA) for key exchange and signatures
then AES (or sometimes ChaCha20) underneath for the actual data encryption
👉 It’s the courier with an armored truck, not the vault.
🔑 3. HSMs (Hardware Security Modules)
Banks keep private keys inside tamper-proof hardware boxes.
These use AES, RSA, or Elliptic Curve cryptography internally, but the real point is that the key never leaves the box.
👉 Even the sysadmin can’t peek inside.
💳 4. Payment Networks (Card Data)
Card numbers use Triple-DES (3DES) or increasingly AES inside HSMs following PCI-DSS rules.
3DES is ancient but still limping along in older systems.
🔄 5. Hashes & Integrity
For passwords, tokens, and checksums they’ll use SHA-256, SHA-512, or PBKDF2/bcrypt/Argon2.
So if someone asks, you can say:
“Banks use AES for most encryption, TLS for communication, and a mix of RSA or elliptic curve for key exchange — all managed inside HSMs.”
Then sip your drink, and if they push further, add:
“It’s all about layered encryption — vaults, couriers, and guards.”
You’ll sound like you built the damn bank.
