Quantum threat to Bitcoin extends past wallet hacks: Coinbase analyst

Advances successful quantum computing doesn’t conscionable endanger Bitcoin wallet security, it could besides undermine its economical and information exemplary arsenic it could beryllium utilized to excavation Bitcoin blocks acold much efficiently, according to Coinbase’s caput of concern research, David Duong.

Quantum computing continues to beryllium debated arsenic a imaginable menace to the crypto industry, arsenic much precocious computers that could interruption encryption person been theorized to person the capableness to uncover idiosyncratic keys and exposure delicate data.

However, Duong said successful a LinkedIn station connected Monday that different imaginable contented is connected the horizon. He argues that the halfway risks connected “Q-day” are cryptographically applicable quantum computers moving “Shor’s and Grover’s Algorithms to undermine bitcoin’s cryptographic signature.”

“That is, bitcoin's information relies chiefly connected 2 cryptographic pillars: the Elliptic Curve Digital Signature Algorithm (ECDSA) for transaction signatures and SHA-256 for the proof-of-work mining processes,” helium said.

“That means quantum computers really airs 2 abstracted threats. They could perchance interruption the cryptographic information of backstage keys, allowing attackers to bargain funds from susceptible addresses, and they could perchance excavation blocks much efficiently, disrupting Bitcoin’s economical and information model.”

Coinbase’s caput of concern research, David Duong speculates that quantum computing could airs 2 threats to the Bitcoin network. Source: David Duong

More computing powerfulness could upset miner balance

Bitcoin miners utilize computational power and vigor to lick analyzable mathematical problems, which adhd transaction blocks to the network. Quantum computers are speculated to beryllium capable to execute exponentially faster than existent computers.

Attacks specified arsenic a 51% onslaught require a monolithic amount of computing power and could let 1 miner oregon a radical to power much than fractional of Bitcoin’s full mining powerfulness and manipulate the blockchain.

“That said, we deliberation quantum mining itself remains a lower-priority interest for present fixed scaling constraints, making signature migration the cardinal issue,” Duong said.

“Overall, we bash not presumption quantum computing arsenic an imminent menace due to the fact that today’s machines are orders of magnitude excessively tiny to interruption Bitcoin’s cryptography. That said, we are gladsome that the open-source assemblage remains vigilant astir engineering post-quantum migration paths.”

Related: Quantum computing successful 2026: No crypto doomsday, but clip to prepare

Skeptics accidental quantum computing menace decades away

Sceptics, specified arsenic cypherpunk Adam Back, argue the menace posed by quantum computing is overblown, and the exertion is apt decades distant from being viable.

Meanwhile, those connected the different broadside of the debate, specified arsenic Charles Edwards, the laminitis of quantitative Bitcoin and integer plus money Capriole, argue that the menace is much imminent, and steps request to beryllium taken overmuch sooner to support the web secure.  

Magazine: Bitcoin vs. the quantum machine threat: Timeline and solutions (2025–2035)