DeFi protocol token
IOTA IOTA
IOTA's Rebased mainnet (launched May 2025) uses a Sui-inspired MoveVM/DPoS architecture with entirely classical ECC cryptography for all critical layers. User transaction signatures use Ed25519 Pure (default), ECDSA secp256k1, or ECDSA secp256r1. Validator/authority consensus signatures use BLS12381 aggregated signatures. All native IOTA asset spend authorization, consensus authentication, and account ownership remain quantum-vulnerable with no PQ or hybrid option available on mainnet. IOTA Identity v1.7 introduces PQ signatures (ML-DSA, SLH-DSA, Falcon, hybrid) but exclusively for Verifiable Credentials/Verifiable Presentations in the identity layer, explicitly not extending to core token spend, consensus, or ledger state. No public PQ migration roadmap, governance proposal, or testnet for the core L1 protocol has been identified. The project demonstrates quantum risk awareness through Identity-layer PQ work and cryptographic agility claims, but no meaningful production protection exists for the native asset or consensus. No independent audit of the core protocol's current cryptographic implementation has been found. The QRI Score of 6 reflects Stage 1 (Quantum Risk Assessed): risk is acknowledged through documentation and Identity-layer PQ work, but no meaningful production PQ protection exists for the native asset.
Category breakdown
QRI Factors
Critical Quantum Blockers
- Active production spend authorization remains entirely ECC-only (Ed25519 Pure, ECDSA secp256k1, ECDSA secp256r1) with no PQ or hybrid option for native IOTA asset transactions.
- Consensus-critical validator authentication uses BLS12381 (classical pairing-based) aggregated signatures, which are quantum-vulnerable.
- No public PQ migration roadmap, governance proposal, or testnet for the core IOTA L1 protocol has been identified.
- All native IOTA value (~100% of circulating supply) is quantum-vulnerable with no migration path.
Key Risks
- All native IOTA token holdings controlled by Ed25519 or ECDSA keys are exposed to long-exposure quantum key-recovery attacks once public keys are revealed on-chain (at spend time or through address reuse).
- Validator BLS12381 keys are long-exposure: public keys are registered on-chain and remain visible, enabling offline quantum attacks against consensus authentication.
- No migration path, freeze mechanism, deprecation policy, or recovery mechanism exists for quantum-vulnerable native IOTA balances.
- Bridge dependencies (Echo Protocol, LayerZero/Stargate integration) introduce additional quantum-vulnerable cross-chain value paths with classical ECDSA signer sets.
- The absence of any core protocol PQ migration roadmap means the entire native asset supply remains indefinitely exposed to future quantum attacks with no planned mitigation.
- P2P node identity uses classical Ed25519 for TLS/QUIC — while not directly spend-critical, it could enable network-level attacks in conjunction with consensus compromise.
Assurance Notes
- No independent cryptographic audit of core IOTA Rebased L1 production implementation (Ed25519/ECDSA spend authorization, BLS12381 validator signatures) has been identified. The Zokyo audit (March 2024) covered IOTA EVM smart contracts only (scope-mismatched). The Hacken audit (July 2025) covered Echo Protocol bridge only (scope-mismatched).
- IOTA Identity v1.7 PQ features (ML-DSA, SLH-DSA, Falcon, hybrid MLDSA44-Ed25519/MLDSA65-Ed25519) are explicitly scoped to Verifiable Credentials and Verifiable Presentations and do not extend to native asset spend authorization, consensus, or ledger state.
- The IOTA Rebased mainnet launched May 5, 2025, rebasing the L1 to a Sui-inspired MoveVM/DPoS architecture. All core cryptographic primitives remain classical ECC (Ed25519, ECDSA secp256k1/secp256r1, BLS12381).
- No public governance proposal, TIP/IIP, or roadmap for core protocol PQ migration has been identified in primary sources as of June 2026.
- Cryptographic agility is claimed in documentation as a design feature but no specific PQ algorithm selection, activation mechanism, or migration timeline is documented for the core protocol.
- LayerQu (v3.1.0 methodology, June 2026) scores IOTA at QRI 26/100, Migration Stage 1 (Acknowledged), Crisis Zone — consistent with this evaluation's findings.
Non-Scoring Caveats
- IOTA Identity v1.7 (released ~2025) supports ML-DSA, SLH-DSA, Falcon, and hybrid signatures for Verifiable Credentials and Verifiable Presentations only. This does not protect native asset ownership or consensus — recorded as assurance context only.
- The IOTA Rebased mainnet (May 2025) uses a Sui-inspired architecture with MoveVM. The cryptographic primitives are inherited from the Sui codebase (fastcrypto library) and remain classical.
- Historical context: IOTA originally used Winternitz OTS (partially quantum-resistant). The Chrysalis upgrade (2021) switched to Ed25519, which is quantum-vulnerable. The Rebased upgrade (2025) continued with Ed25519 and added BLS12381 for validators.
- Echo Protocol bridge (audited by Hacken July 2025) provides EVM-to-IOTA bridging with ECDSA-based committee signatures, introducing additional quantum-vulnerable cross-chain dependencies.
- No formal quantum-specific incident-response playbook or emergency governance process for quantum-related vulnerabilities identified — note-only caveat per QRI spec Section 7.4.
- No formal PQ performance benchmarks for core protocol — note-only caveat per QRI spec Section 7.4.
- Absence of exchange migration attestations is not score-reducing since no PQ migration path exists — operational note only.
Evidence record
Claims and Caveats
Security Assessment & Evidence Preparedness
Public cryptographic inventory and quantum threat model
Claim: IOTA documents its cryptographic mechanisms (Ed25519, ECDSA secp256k1/secp256r1, BLS12381, multisig) in official developer documentation. Quantum threat is acknowledged in IOTA Identity PQ documentation but no formal quantum threat model covering attack assumptions, affected assets, and affected layers exists for the core protocol.
Coverage basis: Partial cryptographic inventory exists; quantum threat model is implied through Identity-layer documentation only
Implementation score: 0.5 · Evidence confidence: Medium
Issue classification: quantum-critical uncertainty · Score treatment: score-reducing
Assurance: Cryptographic inventory is detailed for signature schemes but lacks a comprehensive CBOM-style enumeration of all cryptographic dependencies. Quantum threat model is not formalized for core protocol.
The cryptography documentation page states 'Cryptographic agility is core to IOTA' and claims support for multiple algorithms, but no specific PQ algorithms are documented for core protocol use. The Identity 1.7 PQ docs acknowledge quantum threat to ECC generally but scope mitigation to VCs only.
Security Assessment & Evidence Preparedness
Public evidence record supporting the assessment
Claim: Evidence consists of official documentation, open-source code repositories, and blog posts. No independent audits of core protocol cryptography, no mainnet transaction analysis for quantum exposure, and no reproducible quantum-risk analytics identified.
Coverage basis: Documentation and code references exist; audits and analytics are absent
Implementation score: 0.5 · Evidence confidence: Medium
Issue classification: assurance-only caveat · Score treatment: score-reducing
Assurance: Open-source code is available but no independent cryptographic audit covers the current production signature implementations. Evidence is limited to self-published documentation and code.
Zokyo audit (March 2024) covered IOTA EVM smart contracts only. Hacken audit (August 2025) covered Echo Protocol bridge only. Neither addresses core protocol Ed25519/ECDSA/BLS12381 implementations.
Production Cryptographic Protection
Spend authorization / transaction signatures
Claim: Mainnet spend authorization uses classical Ed25519 Pure (flag 0x00), ECDSA Secp256k1 (0x01), ECDSA Secp256r1 (0x02), and multisig (0x03) exclusively. No PQ or hybrid-PQC path exists for transaction signing.
Coverage basis: ECC-only; no PQ/hybrid option available
Implementation score: 0 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Quantum blocker: Active production spend authorization remains entirely ECC-only (Ed25519, ECDSA secp256k1, ECDSA secp256r1)
Assurance: Official documentation is explicit and unambiguous about signature scheme support. No PQ options are listed for transaction authentication.
Signature flag bytes (0x00-0x03) are documented with no reserved or planned PQ flag values. The signature serialization format (flag || sig || pk) has no extension point visible for PQ schemes.
Production Cryptographic Protection
Account, address, public-key exposure, and key-derivation design
Claim: Addresses are derived from Ed25519/ECDSA public keys via Blake2b-256 hashing. Public keys are exposed in transaction signatures. No PQ/hybrid address formats, key-derivation paths, or exposure mitigations exist.
Coverage basis: All classical ECC address derivation; public keys exposed on-spend
Implementation score: 0 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: Address derivation and key exposure patterns are clearly documented. Public keys are revealed at transaction broadcast (short-exposure on-spend), but address reuse creates long-exposure risk.
Ed25519 public keys are 32 bytes compressed; ECDSA public keys are 33 bytes compressed. Both are included in the serialized signature (flag || sig || pk), making public keys visible to any network observer at spend time.
Production Cryptographic Protection
Consensus-critical authentication
Claim: Validator/authority aggregated signatures use BLS12381 (minSig mode, 48-byte signatures, 96-byte public keys). Account keys for staking rewards use Ed25519. Network keys for TLS/QUIC use Ed25519. All classical.
Coverage basis: BLS12381 and Ed25519 exclusively for all consensus-critical authentication
Implementation score: 0 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Quantum blocker: Validator/authority consensus signatures use BLS12381 exclusively — quantum-vulnerable pairing-based scheme
Assurance: BLS12381 is a pairing-based scheme vulnerable to quantum attacks via Shor's algorithm on the underlying elliptic curves. Proof of possession (KOSK) is used to prevent rogue key attacks but does not address quantum threats.
Starfish BFT consensus (deployed on mainnet) depends on BLS12381 aggregated signatures for validator attestations. A CRQC could forge validator signatures and compromise consensus finality. The protocol requires 2f+1 validator signatures for transaction certification.
Production Cryptographic Protection
State-integrity and data-availability mechanisms
Claim: Checkpoint verification relies on BLS12381 validator committee signatures. State integrity is bound to the same classical signature schemes. No quantum-safe commitments, accumulators, or verifiable data-availability proofs identified.
Coverage basis: State integrity depends on classical BLS12381 validator signatures
Implementation score: 0 · Evidence confidence: Medium
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: Checkpoint verification documentation references BLS12381 validator committee signatures. No quantum-safe alternative or hybrid mechanism is documented.
The Starfish protocol uses an uncertified DAG structure with three-round finality. Block header metadata is separated from transaction payloads. State integrity ultimately depends on validator signature verification which is BLS12381-based.
Production Cryptographic Protection
Privacy and proof layers
Claim: IOTA core protocol does not implement on-chain privacy layers, shielded transactions, or zero-knowledge proofs. IOTA Identity provides PQ-secured Verifiable Credentials but this is a separate application layer.
Coverage basis: No privacy/proof layer exists in core protocol
Implementation score: 1 · Evidence confidence: High
Issue classification: none · Score treatment: not applicable
IOTA Identity v1.7 PQ features (ML-DSA, SLH-DSA, Falcon, hybrid signatures) are noted for completeness but are out of scope for core protocol privacy evaluation.
Production Cryptographic Protection
P2P transport, node identity, and peer authentication
Claim: Network key pair uses Ed25519 for TLS handshake (QUIC) and peer ID. This is classical ECC. P2P is not satisfied by design because asset-spending authorization is not PQ-signed.
Coverage basis: Classical Ed25519 for all P2P/node identity
Implementation score: 0 · Evidence confidence: Medium
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: P2P node identity using classical Ed25519 is a lower-severity concern than spend/consensus vulnerabilities, but remains applicable because asset-spending is not PQ-protected (failing the satisfied-by-design condition in QRI spec Section 7).
Per QRI spec: 'P2P node identity uses classical cryptography, but all asset-spending authorization is PQ-signed on device and network identity is not consensus, spend, bridge, or custody-critical' → satisfied by design. Since IOTA asset-spending is NOT PQ-signed, this condition is not met.
Production Cryptographic Protection
Critical wallet, custody, HSM, and hardware-wallet workflows
Claim: IOTA Wallet (browser extension), Ledger hardware wallet support, and Nightly Wallet all use classical Ed25519/ECDSA key pairs. No PQ/hybrid signing workflows exist for native asset transactions.
Coverage basis: All wallet/custody paths are classical ECC-only
Implementation score: 0 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: Wallet documentation and SDK references confirm Ed25519/ECDSA keypair generation only. No PQ key types are available in the TypeScript SDK cryptography modules.
Ledger hardware wallet support exists for the Rebased mainnet but uses classical Ed25519. BitGo custody integration (December 2025) and Turnkey support (October 2025) are presumed to use classical key material.
Migration Status & Value-at-Risk
Percentage of economically relevant value-at-risk protected
Claim: Approximately 100% of native IOTA circulating supply is quantum-vulnerable. No PQ-protected accounts, addresses, or transaction paths exist for the native asset. Coverage is effectively 0%.
Coverage basis: <25% coverage — experimental/negligible protection
Implementation score: 0.05 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Quantum blocker: All native IOTA value (~100% of circulating supply) is quantum-vulnerable with no migration path
Assurance: Coverage assessment is based on the absence of any PQ transaction path in core protocol documentation and code. No on-chain PQ signatures have been observed or documented for native asset transfers.
IOTA is not PQ-native. The protocol launched with Winternitz OTS (quantum-resistant) but migrated to Ed25519 during Chrysalis (2021). All current production value uses classical ECC. Attack windows include both short-exposure (on-spend public key revelation) and long-exposure (address reuse, dormant holdings with exposed keys).
Migration Status & Value-at-Risk
Critical wallets migrated, protected, or inherently PQ-native
Claim: No critical wallets (treasuries, exchanges, custodians, foundations, bridges) have been migrated to PQ protection. All use classical Ed25519/ECDSA key material.
Coverage basis: No critical wallet migration
Implementation score: 0 · Evidence confidence: Medium
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: BitGo custody (December 2025) and Turnkey support (October 2025) are presumed to use classical key material. No PQ custody attestations identified.
IOTA Foundation, Tangle Ecosystem Association, and DLT Foundation treasuries were mapped to new addresses during the Rebased genesis ceremony (May 2025) but remain on classical Ed25519/ECDSA address formats.
Migration Status & Value-at-Risk
Legacy vulnerable pools identified, measurable, deprecated, migrated, frozen, or proven not to exist
Claim: No identification, measurement, deprecation, or freeze mechanism exists for quantum-vulnerable IOTA holdings. The Wotsicide migration (TIP-0034) moved funds from quantum-resistant W-OTS to quantum-vulnerable Ed25519.
Coverage basis: No legacy pool management for quantum vulnerability
Implementation score: 0 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: TIP-0034 (Wotsicide) documents the migration from W-OTS to Ed25519 during Chrysalis. This was a migration away from quantum resistance. No equivalent mechanism exists for migrating from Ed25519/ECDSA to PQ.
The Rebased mainnet upgrade (May 2025) included a Stardust Objects Snapshot and migration.blob for moving state to the new network, but this preserved classical address formats rather than migrating to PQ.
Migration Mechanism, Governance & Ecosystem Coordination
Public migration or protection roadmap
Claim: No public PQ migration roadmap, sequencing plan, activation criteria, or dependency analysis exists for the core IOTA protocol. Cryptographic agility is claimed as a design feature but without specific PQ milestones.
Coverage basis: No roadmap exists
Implementation score: 0 · Evidence confidence: Medium
Issue classification: quantum-critical uncertainty · Score treatment: score-reducing
Quantum blocker: No public PQ migration roadmap, governance proposal, or testnet for core protocol
Assurance: The 2025-2026 roadmap (ChangeNOW interview, January 2026) mentions PQ only in the context of Identity 1.7. No core protocol PQ migration is referenced.
The cryptography documentation states 'you can choose the right cryptography solution for your system and implement the latest algorithms as they become available' but this is a general agility claim, not a migration plan.
Migration Mechanism, Governance & Ecosystem Coordination
Migration accessibility and defaults
Claim: No PQ/hybrid account creation, wallet tooling, transaction paths, custody paths, user-facing warnings, education, or migration prompts exist for the native IOTA asset.
Coverage basis: No migration accessibility exists
Implementation score: 0 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: TypeScript SDK cryptography modules support only Ed25519 and ECDSA keypair generation. No PQ key types, hybrid signing, or migration tooling is available.
The IOTA Wallet browser extension and Nightly Wallet both use classical key derivation. No quantum-safety warnings or migration prompts are presented to users.
Migration Mechanism, Governance & Ecosystem Coordination
Migration enforcement and coordination
Claim: No enforcement mechanisms (deprecation, freeze, disabled legacy signing, restricted withdrawals, unsafe-path blocking, mandatory migration deadlines) exist. No exchange, custody, bridge, wallet, or infrastructure coordination for PQ migration identified.
Coverage basis: No enforcement or coordination mechanisms exist
Implementation score: 0 · Evidence confidence: Medium
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: No evidence of any coordination with exchanges, custodians, or infrastructure providers regarding PQ migration. The Rebased upgrade demonstrated coordination capability for protocol upgrades but did not address quantum readiness.
The Rebased genesis ceremony (May 2025) showed that IOTA can coordinate complex network upgrades with validators and infrastructure providers, but this capability has not been applied to quantum migration.
Migration Mechanism, Governance & Ecosystem Coordination
Emergency disclosure, incident-response, or governance process for quantum-related vulnerabilities
Claim: No quantum-specific emergency disclosure process, incident-response playbook, or governance mechanism identified. General security contacts and disclosure processes may exist but are not quantum-specific.
Coverage basis: No quantum-specific incident response
Implementation score: 0 · Evidence confidence: Low
Issue classification: assurance-only caveat · Score treatment: score-reducing
Assurance: Per QRI spec Section 7.4, lack of a formal quantum-specific incident-response playbook is normally a note-only caveat. However, in the absence of any PQ migration path, the lack of even a basic quantum emergency process contributes to the overall quantum-critical uncertainty.
The IOTA Foundation has demonstrated operational security capability through the Rebased upgrade coordination, but no quantum-specific processes are publicly documented.
Algorithm & Implementation Assurance
Uses NIST-standardized, standards-track, or broadly reviewed PQC/hybrid-PQC algorithms
Claim: No PQC algorithms are used in the core IOTA protocol. IOTA Identity v1.7 uses ML-DSA (NIST FIPS 204), SLH-DSA (NIST FIPS 205), and Falcon (NIST standards-track) — but only for Verifiable Credentials, not native asset protection.
Coverage basis: No PQC algorithms in core protocol scope
Implementation score: 0 · Evidence confidence: High
Issue classification: quantum-critical vulnerability · Score treatment: score-reducing
Assurance: IOTA Identity's use of NIST-standards-track algorithms (ML-DSA-44/65/87, SLH-DSA-128/192/256, Falcon-512/1024) demonstrates awareness of appropriate PQC algorithm selection. This capability has not been extended to core protocol.
Hybrid signatures (id-MLDSA44-Ed25519, id-MLDSA65-Ed25519) are implemented in Identity v1.7 via LINKS Foundation collaboration, showing technical feasibility for hybrid approaches that could theoretically be applied to core protocol.
Algorithm & Implementation Assurance
Independent cryptographic and implementation audit
Claim: No independent cryptographic audit of core protocol signature implementations (Ed25519, ECDSA, BLS12381) identified. Available audits cover different scopes.
Coverage basis: No audit of quantum-critical core cryptography
Implementation score: 0 · Evidence confidence: Medium
Issue classification: assurance-only caveat · Score treatment: score-reducing
Assurance: Zokyo audit (March 2024): IOTA EVM smart contracts only — scope-mismatched for core protocol cryptography. Hacken audit (August 2025): Echo Protocol bridge (Move-based, IOTA side only) — scope-mismatched. No audit covers Ed25519/ECDSA/BLS12381 production signature implementations.
Per QRI spec, absent audit does not by itself reduce QRI Score when the quantum-security property can be verified from other evidence. Here, the absence of any PQ implementation means there is no quantum-security property to verify — the score is 0 on implementation grounds, not audit grounds.
Algorithm & Implementation Assurance
Open-source, reproducible implementation
Claim: IOTA core protocol is open source (Apache 2.0 license). However, no PQ implementation exists in core protocol to be open-source or reproducible. Classical implementations are open source but do not contribute to quantum readiness.
Coverage basis: No PQ implementation exists to evaluate for openness
Implementation score: 0 · Evidence confidence: High
Issue classification: none · Score treatment: score-reducing
Assurance: Source code is publicly available and actively maintained (latest mainnet release v1.24.0, June 2026). The iota-crypto crate provides unified cryptography primitives. This infrastructure could support future PQ integration but currently contains only classical algorithms.
The iota-crypto crate (crates.io/crates/iota-crypto) provides the unified type alias/enum wrapper for cryptography primitives. This architectural choice could facilitate future PQ algorithm addition but does not constitute current PQ implementation.
Algorithm & Implementation Assurance
Parameter agility and future upgrade path
Claim: IOTA documentation claims cryptographic agility as a core design feature: 'The system supports multiple cryptography algorithms and primitives and can switch between them rapidly.' The unified cryptography type system supports this claim architecturally.
Coverage basis: Documented design claim with architectural support
Implementation score: 0.25 · Evidence confidence: Medium
Issue classification: assurance-only caveat · Score treatment: score-reducing
Assurance: The cryptographic agility claim is a design-level assertion. The unified type system (enum wrapper for public key, signature, aggregated signature, hash functions) provides architectural support for algorithm substitution. However, no specific PQ upgrade path, activation mechanism, or migration procedure is documented.
Scored at 0.25 (public design/roadmap level) because the agility claim is documented and architecturally supported, but no PQ-specific upgrade path, testnet, or activation criteria exist. This is a general design property, not a quantum-specific migration plan.
Algorithm & Implementation Assurance
Stateful-signature safety, side-channel, fault-injection, state-management, hardware-wallet, HSM, or custody implementation risks
Claim: IOTA core protocol does not use stateful hash-based signatures (XMSS/LMS). Classical Ed25519/ECDSA implementations have standard side-channel considerations but no PQ-specific risks apply.
Coverage basis: No stateful PQC signatures in core protocol
Implementation score: 1 · Evidence confidence: High
Issue classification: none · Score treatment: not applicable
If IOTA were to adopt XMSS/LMS for PQ migration, stateful-signature safety would become applicable. The historical use of Winternitz OTS (a stateful one-time signature scheme) suggests the team has prior experience with stateful signature management.
Algorithm & Implementation Assurance
Performance and resource-impact analysis
Claim: No public performance or resource-impact analysis for PQ signature deployment on IOTA core protocol. PQ signature sizes (kilobytes vs. current 64-96 bytes) would significantly impact block sizes, validation times, and storage requirements.
Coverage basis: No PQ performance analysis exists
Implementation score: 0 · Evidence confidence: Medium
Issue classification: assurance-only caveat · Score treatment: score-reducing
Assurance: Per QRI spec Section 7.4, lack of formal performance benchmark is normally a note-only caveat. Scored at 0 because no PQ implementation exists to benchmark — the absence of analysis reflects the absence of any PQ deployment rather than a gap in an existing deployment.
IOTA Rebased claims 50,000+ TPS with sub-second finality. PQ signature sizes (ML-DSA-44: ~2.4KB, SLH-DSA-128: ~7.8KB, Falcon-512: ~0.7KB) would represent a significant increase over current Ed25519 (64 bytes) and BLS12381 (48 bytes) signatures. No analysis of impact on throughput, storage, or validation costs is publicly available.
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