Coinbase, which holds 5% of all bitcoin, wants the quantum fix started now
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Coinbase, which holds about 5% of all bitcoin, has urged the Bitcoin community to begin preparations now for the threat posed by future quantum computers. These quantum machines could potentially derive private keys from public keys and steal bitcoins from vulnerable wallets. Coinbase recommends adopting flexible post-quantum cryptographic signatures, staged transitions to new security methods, reliable implementations, support for multiparty computation (MPC), and separate handling of dormant or late-migrating wallets to avoid delays.
Why it matters
Coinbase emphasizes that Bitcoin's decentralized design makes implementing security upgrades slow and complicated, so starting early is critical to securing the network before quantum computers capable of breaking current cryptography (cryptographically relevant quantum computers) arrive—possibly by 2029, according to some researchers. The source states changes to Bitcoin consensus and ecosystem migrations can take years, so immediate action is necessary to protect users and institutions holding large amounts of bitcoin.
Key context
Bitcoin currently uses ECDSA and Schnorr signature methods, which are secure against today’s classical computers. However, a sufficiently powerful quantum computer could reverse-engineer private keys from public keys, exposing wallets to theft. Coinbase proposes a transition to post-quantum (PQ) cryptography with attention to backward compatibility, user safety, network constraints, and security for large custodians using MPC. The handling of old or dormant wallets, which may be more exposed, should be addressed separately.
Key numbers and entities
The key entity is Coinbase, a Nasdaq-listed crypto exchange holding about 5% of all bitcoin. The quantum threat referenced includes cryptographically relevant quantum computers (CRQCs) that could emerge around 2029, according to Google researchers. The proposals mentioned include Bitcoin Improvement Proposals (BIPs) 360/P2MR and P2TRv2 for flexible signature support.
What remains unclear
The source does not specify which exact quantum-resistant signature schemes will be chosen for Bitcoin's post-quantum upgrade, nor does it detail timelines, technical challenges of implementing these changes, or how the community might resolve disputes over dormant wallet coins. The future regulatory or market impacts of these changes are also not discussed.