Podcast Summary: Founder's Story (Ep. 258)

Title: Why Your Passwords, Banks, and Bitcoin Could All Be Gone Overnight
Host: IBH Media
Guest: Eric Dresdale, Founder of Entrokey Labs
Date: August 18, 2025

Episode Overview

This episode of Founder’s Story dives deep into the growing threat quantum computing poses to the world’s digital infrastructure. Host Dan (A) sits down with Eric Dresdale (B), founder of Entrokey Labs, to demystify quantum computing, discuss how emerging quantum technologies could instantly break the encryption protecting everything from passwords and banks to bitcoin wallets, and explore how Dresdale’s company is pioneering quantum-resistant solutions. The conversation also touches on the intersection of AI and quantum threats, the urgency for proactive security measures, and the journey behind Entrokey Labs' world-changing technology.

Key Topics & Discussion Points

1. Quantum Computing: What Is the Threat?

• Quantum Computing vs. Classical Computing

  • Classical computers solve problems sequentially; quantum computers attack multiple possibilities simultaneously.
  • Eric: "Whereas our current encryption...would take tens of thousands of years with classical computers...Quantum computing will be able to do that in minutes, if not seconds." (02:35)

• Encryption Vulnerability

  • All modern encryption—protecting emails, messages, crypto wallets, and banks—could be instantly broken once quantum computers are realized.
  • The first major users of quantum computing will be nation states, making it an arms race with massive global stakes (03:09).

• Shor’s Algorithm Explained

  • Shor’s algorithm is the breakthrough that would allow quantum computers to crack current encryption.
  • Not just institutional targets—individual crypto wallets could be drained, causing market chaos.
  • Eric: "You don't necessarily need to break the Bitcoin chain to create panic, right? You can break a bunch of wallets and completely drain those and there's enough that will send the markets into a tailspin." (04:11)

2. Timelines and Q-Day Explained

• Q-Day Definition
  • Q-Day is the moment a cryptographically realized quantum computer exists and Shor's algorithm can be run in practice.
  • Estimated timelines have moved from 2040+ to as soon as 2027–2029, according to industry leaders like IBM and Google.
  • Eric: "If you asked people three years ago when the threat of quantum would be, they would have said, I don't know, 2040, 2045...now...some...are even claiming 2027." (06:31)
  • The issue isn't awareness; it's that even those aware are not being proactive enough.

3. Combining AI and Quantum: The Ultimate Threat

• Quantum is a sledgehammer; AI is a scalpel—both present unprecedented risks when used together.
• AI finds patterns in password creation, while quantum can instantly break strong encryption.
• Eric: "AI is more insidious. It's like a scalpel. It'll get in there and pick it apart." (05:34)

4. Entropy, Randomness, and Cybersecurity Innovation

• What is Entropy in This Context?

  • Entropy is the measure of true randomness or chaos in key generation.
  • Quality entropy is foundational to cybersecurity—if it's weak, AI and quantum computers can find patterns to exploit.
  • Eric: "You could have the nicest house in the world, but if it's built on sand, it's going to crumble." (10:04)
  • Entrokey Labs’ innovation: software-generated entropy that outperforms hardware approaches (0.997 out of 1, per NIST standards).

• Removing Patterns with AI

  • Entrokey's tech uses AI both to find and remove hidden patterns in encryption keys, making them almost impossible for attackers—human or machine—to guess.
  • Eric: "We can now with an AI, find the hidden patterns and hidden patterns within patterns and remove them before we insert them in the key." (11:18)

• Why Hardware Solutions Fall Short

  • Hardware has supply chain and environmental vulnerabilities (temperature sensitivity, ambient noise).
  • Software-only solutions scale globally and remove those weaknesses.

5. The Founding Journey of Entrokey Labs

• Originated from a patent idea for biometric identities secured via satellites in outer space—leveraging cosmic radiation for entropy.
• Evolved with co-founders' expertise to a terrestrial, then purely software-based solution.
• Eric: "We knew pretty quickly we had something big. I don't think either of us though, could have prepared for what this evolved into..." (18:51)
• Cambridge University case study confirmed their approach could cut the cost and time of global transition to post-quantum security by 90%. (18:58)

6. Market Adoption & The Role of Government

• Adoption is starting at the government and critical infrastructure level.
• Regulatory mandates will soon force major sectors (finance, healthcare, telco) to adopt quantum-resistant security.
• Industry inertia is high—companies are waiting for governments or standards bodies to dictate required protections.
• Eric: “This is going to be in our opinion, really government led in terms of adoption...We're going to start at the most critical place and...mandating this.” (20:49)

7. Potential Impact of a Quantum ‘Apocalypse’

• If Q-Day hits before defenses are ready, daily global losses could hit $500 billion—comparable to the GDP of major countries.
• Likened to a “zombie apocalypse”—digital chaos instead of unity (27:46).
• Modern digital life (self-driving cars, smart homes, social media narratives) could all be compromised simultaneously.

Notable Quotes & Memorable Moments

• On Quantum as a Threat:

  • “Quantum computing will do many amazing things...but its first application is a weapon.”—Eric (02:09)

• On AI & Passwords:

  • “If you don't have good entropy, AI is going to be able to find the patterns in the data that you're inserting in your keys.” (10:55)

• On Readiness:

  • "With Y2K, we had a date certain...With this we don't and that's why companies and people...can't be lackadaisical about it." (24:00)

• On Societal Risk:

  • "Just the economic impact alone should Q Day arrive would be $500 billion a day in losses. That's many countries' GDP." (28:15)

Important Timestamps

| Timestamp | Segment / Topic | |-----------|----------------------------------------------------------| | 01:50 | Quantum computing explained with maze analogy | | 03:38 | Shor’s algorithm and breaking Bitcoin and banks | | 05:43 | AI as an additional cybersecurity threat | | 06:12 | Q-Day defined—timeline shrink | | 09:21 | Entrokey’s software-only, quantum-resistant keygen | | 12:32 | Deep dive on entropy and randomness | | 15:26 | The founding story: from satellites to software | | 20:32 | Why government and regulation drive adoption | | 23:20 | Acceleration of timelines (like AGI, now quantum) | | 26:31 | “Game over” without readiness; configuration advantages | | 27:16 | Zombie apocalypse metaphor—potential for mass chaos | | 28:46 | Real-world examples (IoT, cars, social media threats) |

Action Steps & Closing Thoughts

• Proactive cyber defense is urgent; waiting until "Q-Day" could be catastrophic.
• Entrokey Labs offers a paradigm shift: provably secure, software-only entropy/keygen that seamlessly integrates, requiring “zero rip and replace.”
• Government and regulated industry must lead, but every business should audit their cryptographic systems now.

"This is something everyone should be aware of. This should be carried with the same weight we did going into Y2K...The difference is with Y2K, we had a date certain of when that was coming. With this we don't."
—Eric Dresdale (24:00)

Learn more or connect:

• Website: entrokeylabs.com
• Email: eric@entrokeylabs.com
• LinkedIn & X: Team active on both platforms

This conversation blends technical depth, real-world risk, and an inspiring founder journey—serving as both a warning and a call to action for anyone concerned with cybersecurity’s future.