As quantum computing inches closer to reality, its potential to crack the encryption systems that protect global financial data is becoming a pressing concern. A new study by Nigerian researcher Michael O. Gbadebo offers a timely solution, a hybrid encryption model that combines the Advanced Encryption Standard (AES) with a new Post-Quantum Cryptography (PQC) model.
This approach, detailed in the Asian Journal of Research in Computer Science, could help financial institutions stay ahead of quantum-powered cyber threats.
Gbadebo’s model doesn’t call for scrapping existing systems. Instead, it pairs the reliable AES used for decades to secure sensitive data with PQC algorithms designed to withstand quantum attacks. “It’s about building on what works while preparing for the future,” Gbadebo explained. His research introduces a system that allows institutions to easily switch between encryption methods as technology and threats change—a concept he calls “cryptographic agility.”
In tests, Gbadebo evaluated several PQC algorithms based on speed, efficiency, and adaptability. CRYSTALS-Kyber, one of the algorithms recently standardised by the U.S. National Institute of Standards and Technology (NIST), emerged as the top performer with an agility score of 8.35. This makes it a strong candidate for financial institutions seeking both security and performance.
But Gbadebo didn’t stop at theory. He integrated PQC into blockchain networks using Hyperledger Fabric, a popular platform for enterprise blockchain solutions. The results were striking: transaction finality time—the time it takes to complete a transaction—dropped by 25 per cent. This shows that quantum-resistant encryption can boost both security and efficiency, a critical factor for sectors like digital banking and high-frequency trading, where speed is everything.
The stakes are high. Gbadebo’s study includes economic modelling that paints a grim picture of a quantum-enabled security breach. Such an event could trigger a 3.2 per cent drop in GDP, cybercrime losses topping $150 billion, and an 8.7 per cent plunge in capital market indices. “The cost of inaction is too great,” Gbadebo warned. “Institutions need to act now to protect their data and maintain trust.”
Gbadebo’s work aligns with global efforts to prepare for the quantum era. NIST has been leading the charge, finalising PQC algorithms like CRYSTALS-Kyber and Dilithium in 2022 to set a benchmark for quantum-safe security. Meanwhile, the World Economic Forum has urged businesses to adopt quantum-resistant cryptography to safeguard the global economy, according to its 2023 report on quantum computing and cybersecurity.
What sets this model apart is its practicality. Rather than waiting for a crisis, he pushes for a proactive approach—encouraging institutions to use flexible encryption that can be updated as new threats emerge. “Security shouldn’t be stuck in the past,” he said. “It needs to keep up with the risks.” His hybrid model offers a way to integrate quantum-resistant solutions without tearing down existing systems.
As quantum computing advances, Gbadebo’s research serves as both a wake-up call and a solution for financial institutions worldwide. By blending trusted methods with new technology, his approach ensures sensitive data stays secure in the face of tomorrow’s threats.
