This episode of Bankless Rollup covers the alarming possibility that AI could break blockchain cryptography sooner than quantum computing, as Justin Drake calls for a 'controlled mass migration' to secure wallets. Tom Lee stops buying ETH after reaching 5% supply, two Ethereum L2s shut down, Zcash ETFs surge, and regulatory wins include FinCEN withdrawing wallet rules.
Summarized by Podsumo
AI 'superintelligence' could break ECDSA cryptography within months, sparking a 'bunker mode' call from Justin Drake and a warning from cryptographer Matthew Green that encryption itself may be lost.
Tom Lee's Bitmine stops buying ETH after reaching 98% of 5% supply, shifting focus to buybacks and staking infrastructure instead of more ETH.
Two major Ethereum L2s (Blast with $2.3B TVL and Abstract, Pudgy Penguins' L2) shut down due to unsustainable economics; Starknet considers becoming a Layer 1 for quantum resistance.
Zcash ETFs hit $1B in AUM; Winklevoss files for 'WINK' ETF. Zcash remains bullish despite a 17% weekly pullback.
FinCEN withdraws proposed rules requiring AML/KYC on non-custodial wallet transactions and a mixer rule, a significant regulatory win for crypto.
"Today I call on the blockchain industry to calmly begin planning for bunker mode... I now believe it is reasonable to brace for the possibility that ECDSA breaks before Q Day."
"I think we might lose public key cryptography... encryption could be decrypted. This is bigger than just blockchains."
"It took us a little over a year to buy 5% of all ETH. We bought in the bear market. Now we stop."