Galaxy pledges $5M for developers quantum-proofing BitcoinGalaxy pledged up to $5 million in grants for developers working on Bitcoin’s quantum security and elected a council of quantum-advisory experts to research quantum-resistant migration solutions.

Galaxy Digital has committed up to $5 million in grants to support open-source developers working on enhancing Bitcoin's quantum security through post-quantum cryptography. As part of its Bitcoin Quantum Readiness Initiative, Galaxy also established a quantum advisory council comprising experts including Barry Sanders of the University of Calgary, Damien Bérubé from MIT, and Eran Tromer of Boston University. The funding will back projects such as quantum-resistant upgrade proposals, signature schemes, migration tools for wallets and custodians, and formal security audits.

The urgency of improving Bitcoin's quantum resistance is underscored by analytics from Glassnode, which estimates that roughly 30% of Bitcoin's supply could be vulnerable if relevant quantum computers emerge. Within this figure, about 10% of Bitcoin's supply is considered "structurally unsafe" due to the output type, while an additional 20% is seen as "operationally unsafe" because of current key and address management practices.

There remains debate about the timeline for a practical quantum computing threat to Bitcoin. Blockstream CEO Adam Back has suggested that Bitcoin faces no significant quantum risk for 20 to 40 years, offering enough time to adopt post-quantum cryptography standards recently approved by the US National Institute of Standards and Technology (NIST). In August 2024, NIST published three standards specifically focused on post-quantum cryptography, which include algorithms potentially applicable to Bitcoin's future upgrades. Blockstream Research has also proposed a hash-based signature scheme as a promising approach to post-quantum security, aiming to replace Bitcoin's current signature methods.

Meanwhile, some financial analysts, such as those at Bernstein Wealth Management, argue Bitcoin may have just three to five years to prepare a security upgrade to counter quantum threats. This range of expert opinions illustrates the ongoing uncertainty around the timing of quantum computing breakthroughs and their implications for Bitcoin’s security. The developments and funding announced by Galaxy Digital signal increased focus and resources being directed toward proactively addressing these concerns.