A newly formed brain trust of top-notch cryptographic researchers has determined that your digital assets are safe from quantum computers today. However, the clock to secure them for the future is now ticking.
Coinbase has published the first position paper from its newly assembled Independent Advisory Board on Quantum Computing and Blockchain.
The council features top researchers from Stanford, UT Austin, the Ethereum Foundation, Eigen Labs, Bar-Ilan University, and UC Santa Barbara. It has been determined that a quantum machine capable of breaking modern blockchain cryptography does not yet exist, but its eventual creation is essentially inevitable.
A sufficiently powerful quantum computer is likely at least a decade away, but the industry has to start preparing now.
Where the real vulnerabilities lie
Core infrastructure is largely secure. Bitcoin mining, hash functions, and the historical records of major blockchains are not threatened by quantum advancements in any meaningful way.
However, wallets are vulnerable, and the board estimates that 6.9 million BTC currently fall into this highly vulnerable category.
You Might Also Like
Networks using proof-of-stake consensus face additional exposure through the specific signature schemes validators use to secure the network.
The cryptographic community has been developing quantum-resistant alternatives for over two decades, and the U.S. National Institute of Standards and Technology (NIST) has already standardized several new security schemes.
The problem lies with the fact that new quantum-safe signatures are substantially larger in data size. Their integration will negatively affect transaction speeds and other aspects. Furthermore, coordinating a migration across millions of decentralized users is extremely cumbersome.
The multibillion-dollar question
What happens to wallets that never upgrade?
Lost keys, inactive holders, and abandoned accounts mean that a significant portion of digital assets will inevitably be left exposed when quantum computers come online.
Coinbase noted that it established the advisory board to ensure its corporate security strategy is driven by “science, not headlines.” The exchange is currently adapting its infrastructure to quickly adopt new cryptographic standards.
Be the first to comment