Quantum Computing Will Break Encryption. How Disruptive Will It Be?

Disruption is a word we’ve heard time and time again over the past decade. But while CIOs and CTOs have grown accustomed to navigating breakthroughs like cloud, 5G, and AI, quantum computing will disrupt on a whole different scale. Beyond its advantages, it will force businesses to reimagine encryption, cloud infrastructure, data storage, and entire operational frameworks.

What you’ll learn in this article:

• The two types of disruption: additive and systemic—and why quantum computing is systemic.
• Why quantum computing demands urgency and preparation, even for businesses that don’t plan to leverage it.
• The systemic implications of quantum computing across industries, systems, and frameworks.
• Practical steps your business can take today to prepare for the post-quantum era.

Quick refresher on quantum computing

Before we dive in, let’s revisit the basic concepts of quantum computing:

Quantum computing leverages the principles of quantum mechanics—the science of how particles behave at atomic and subatomic scales. Unlike classical computers, which use binary bits (0s and 1s), quantum computers use qubits, which can exist in multiple states simultaneously (superposition) and interact instantly with one another (entanglement). Quantum algorithms also adjust probabilities to enhance correct solutions and minimize errors (interference).

By harnessing the probabilistic nature of quantum mechanics, quantum computing can tackle problems that are practically impossible for classical machines to solve within a reasonable timeframe.

Introducing “additive” and “systemic” disruption

Some disruptions are, well, more disruptive than others. To understand the scale of quantum computing’s impact, we’ve categorized disruption into two types: additive and systemic. Both introduce significant advancements that create new capabilities and efficiencies, but:

• Additive disruptions enhance existing systems and processes with minimal changes to their core structure.
• Systemic disruptions transform or replace existing systems and processes, requiring entirely new approaches.

Think of it like this: additive disruption is like upgrading from a regular car to an electric one—it’s an improvement, but the concept of driving remains the same. Systemic disruption is like replacing roads with teleportation, reinventing transportation methods altogether.

The table below breaks down some key differences:

Why quantum computing is systemic disruption

Quantum computing is a systemic disruption because it breaks the cryptographic security that underpins modern digital infrastructure and forces industries to reengineer critical systems. Unlike other advancements that businesses can integrate gradually, quantum computing requires proactive adaptation to prevent risks.

Its impact is systemic because it:

• Compromises encryption: Widely used encryption standards will become ineffective, leaving financial transactions, personal data, and proprietary information exposed.
• Destabilizes security frameworks: Cloud environments, authentication systems, and secure communications must transition to quantum-resistant protocols to prevent widespread vulnerabilities.
• Forces industry-wide transformation: Sectors like finance, healthcare, and telecommunications will need to rethink compliance, infrastructure, and operational security—not just to leverage quantum’s advantages, but to defend against those who do.

Fortunately, we know enough about quantum computing—even before its widespread viability—to understand its implications and steps businesses can take to prepare. Let’s explore those next.

The systemic implications of quantum computing

Cybersecurity and encryption

As we mentioned, quantum computing’s biggest threat is to encryption—the backbone of modern cybersecurity.

• Encryption obsolescence: Algorithms like RSA and ECC—the current gold standard for secure online transactions, communications, and sensitive data—will be rendered ineffective. Post-quantum cryptography (PQC) is essential for protecting assets in the quantum era.
• The "harvest now, decrypt later" threat: Cybercriminals can intercept encrypted data today and decrypt it in the future using quantum computers. Sensitive legacy data—whether healthcare data, financial transactions, customer information, or intellectual property—may already be at risk.

Systems and technologies

Here’s a snapshot of some of the systems and technologies that will require substantial reengineering:

• Cloud computing: Quantum computing will fundamentally alter how providers like AWS, Azure, and Google Cloud secure data, requiring updates to encryption libraries, APIs, and authentication protocols to prevent vulnerabilities. Offering quantum computation as a cloud service also presents scalability challenges, as specialized hardware—such as cryogenic cooling and error-correction systems—makes resource scaling far more complex than in traditional cloud environments.
• Data storage: Sensitive, long-lived data must be re-encrypted or migrated to quantum-safe systems. For businesses with extensive legacy data, the logistical demands of identifying and prioritizing these records for re-encryption are immense.
• IoT and edge devices: These devices rely on lightweight encryption to conserve resources. These minimal defenses will be rendered obsolete by quantum computing, exposing countless devices to potential breaches. Upgrading IoT encryption standards will require a significant effort, particularly for edge devices with hardware limitations that cannot support more complex quantum-safe protocols without full redesigns.
• Communication protocols: Secure communication methods like HTTPS, VPNs, and SSL certificates will require quantum-resistant cryptography. Secure communication is the backbone of modern digital interactions, and its disruption could result in widespread vulnerabilities and availability issues if not addressed in time.
• End-user devices: From laptops to smartphones, devices must be updated to support quantum-safe encryption. While software patches can address some issues, older hardware may need complete replacement to handle the demands of post-quantum algorithms.

Industries and sectors

Here’s a brief overview of some challenges and opportunities for key industries.

• Healthcare and life sciences: Patient records, genomic data, and research breakthroughs are highly vulnerable to quantum-enabled attacks. However, healthcare is among the sectors expected to see the earliest impact from quantum computing, with the potential to accelerate drug discovery and revolutionize personalized medicine.
• Banking and finance: Cryptographic algorithms critical to secure transactions, fraud prevention, and risk modeling are at risk of obsolescence from quantum-enabled threats. However, quantum computing could transform portfolio management, market simulations, and real-time analytics—part of a broader set of use cases projected to be worth $622 billion with the advent of fault-tolerant quantum computers.
• Logistics and supply chain: Optimization algorithms powered by quantum computing will unlock new levels of efficiency in inventory management, route planning, and resource allocation. Tasks that currently take weeks to compute, often through simulations, could be completed in under an hour with quantum technology.
• Energy and utilities: Quantum computing can drive breakthroughs in grid optimization, renewable energy modeling, and predictive maintenance. Additionally, quantum’s energy-efficient processing could alleviate the growing strain on data center infrastructure, delivering up to 100x greater energy efficiency.
• Manufacturing: Quantum computing will accelerate materials discovery, enabling the development of stronger, lighter, and more efficient materials for industries like aerospace and automotive. Supply chain optimization will improve agility, while advanced quality control processes will minimize waste and enhance product reliability.
• Telecommunications: Communication networks that rely on cryptographic protocols like VPNs and SSL are vulnerable to quantum-enabled breaches. Transitioning to quantum-safe standards will be critical to maintaining data integrity and ensuring secure digital interactions.

Compliance and regulatory landscape

Governments and industry bodies are actively defining quantum-safe standards, and organizations must prepare to meet these evolving requirements.

• Emergence of quantum standards: Organizations like NIST are developing post-quantum cryptography (PQC) standards to address vulnerabilities. These efforts are crucial, but global adoption will take years, creating a gap that businesses must proactively address.
• Sector-specific regulations: Industries such as finance, healthcare, and government are likely to face earlier and stricter mandates for adopting quantum-safe infrastructure, given the sensitivity of their data and operations.
• Global compliance challenges: Multinational companies will encounter inconsistent quantum-safe standards across jurisdictions. This adds complexity to cross-border operations, especially with data privacy laws like GDPR overlapping with quantum security requirements.
• Proactive preparation: Businesses must monitor the development of standards, conduct risk assessments to identify vulnerabilities, and develop plans for transitioning to quantum-safe systems to ensure compliance and minimize disruption.

Preparing for the systemic disruption of quantum computing

Your approach to preparation should balance immediate action with long-term adaptability. By building a resilient foundation today, organizations can position themselves for quantum adoption—or, at the very least, mitigate the significant security risks it poses.

Steps to prepare:

1. Learn the basics. Build a working knowledge, focusing on key concepts like qubits and post-quantum cryptography. Start with accessible resources (like asking AI to “explain quantum computing like I’m five”) and keep up with expert publications like The Quantum Insider to gradually discover use cases, developments, and predictions.
2. Shift to a proactive security strategy. Transitioning to post-quantum cryptography (PQC) must begin now. Start by inventorying sensitive legacy data—such as healthcare records and intellectual property—and prepare a roadmap for transitioning these to quantum-safe systems as standards mature.
3. Establish a "quantum resilience" team. Establish a cross-functional task force to drive quantum readiness. Include cryptographers, system architects, compliance officers, IT leaders, and analysts. This team should monitor advancements in quantum computing, identify risks, test quantum-safe solutions, and prepare the organization for rapid adaptation. Collaboration across departments ensures a holistic response to this systemic challenge.
4. Use quantum-inspired tools as a steppingstone. Quantum-inspired algorithms simulate quantum problem-solving on classical systems, offering immediate benefits in areas like logistics and portfolio optimization while building familiarity with quantum methodologies.
5. Prioritize partnerships over self-reliance. Collaborate with technology providers, academic institutions, and industry consortia to share knowledge, test solutions, and align with evolving standards.

Quantum readiness: An organizational imperative

Former U.S. Secretary of Defense Donald Rumsfeld famously said:

“There are known knowns, things we know that we know. And there are known unknowns, things that we know we don't know. But there are also unknown unknowns, things we do not know we don't know.”

This captures the essence of systemic disruption and the importance of quantum readiness. Businesses know they must transition to post-quantum cryptography—those are known knowns. They know evolving standards, breakthroughs, and new risks will emerge—known unknowns. But it’s the unknown unknowns—the unforeseen ripple effects of quantum computing—that will redefine industries and test resilience.

Like any disruption, quantum computing will introduce novel possibilities and efficiencies. But unlike most, it will require industries to rethink computational models, data architectures, security practices, and regulatory frameworks. Businesses will need to adapt—whether or not they plan to leverage quantum themselves.

By taking steps to learn about quantum, secure sensitive data, and embed adaptability into operations, businesses can spend less time scrambling when the unknowable becomes reality and more time driving business forward in the post-quantum era.

Download a free copy of Softtek's Digital Trends 2025 Report for deep insights into quantum strategy, self-evolving software, AI breakthroughs, and more.