Coinbase CEO Brian Armstrong said quantum computing does not pose an immediate threat to Bitcoin in the near term. On the other hand, Armstrong emphasized that sufficiently powerful quantum computers could become a reality in the future, so the cryptocurrency industry should start preparations today.
New consortium announced
In his statement on X, Armstrong announced that a new initiative called Bitcoin Security Consortium has been launched under the leadership of Coinbase. BlackRock, Fidelity Digital Assets, Block, Blockstream, Strategy and other major participants from the industry also support this structure. The consortium’s goal was announced as supporting the long-term security of the Bitcoin network and carrying out joint preparations against the possible effects of quantum computers.
Brian Armstrong emphasizes that the quantum threat does not emerge overnight, but that the industry should now shape safe transition plans for years to come.
With this announcement, Coinbase also published a road map detailing its post-quantum strategy. The exchange stated that it has developed a quantum-resistant version of its private key management system and that this structure is called PQ CoreKMS.
The threat is not imminent, the need for preparation comes to the fore
Coinbase noted that there is a strong belief that fault-tolerant quantum computers will be developed sooner or later. According to the company’s quantum-focused board, this risk is not a topic that will emerge in the near future. It was stated that the real difficulty lies in how to coordinate the secure transition process in decentralized blockchain networks with millions of users.
Mini dictionary: NIST is known as the US National Institute of Standards and Technology. The institution selected and standardized the first standard algorithms for post-quantum cryptography, providing the technical basis for the transition in the public and private sectors.
Coinbase will hold collaborative sessions with Bitcoin Core developers, cryptographers and researchers starting in August. In these meetings, transition methods will be discussed. The company also stated that it will provide engineering resources and financing for this purpose.
Broad consensus will be required for technical transition
In recent years, NIST has completed the selection and standardization of the first algorithms in the field of post-quantum cryptography. Governments and technology companies have also begun to adapt critical infrastructures to these new standards. However, it is stated that current quantum computers are not at a scale that can break Bitcoin’s elliptic curve cryptography.
Experts point out that a quantum computer at the cryptographic level that can be effective against Bitcoin requires millions of high-quality physical qubits and powerful error correction systems.
Researchers are making steady progress in hardware reliability, error correction, and logical qubits. However, it is difficult to predict with certainty when such a system will emerge. Prominent options on the Bitcoin side include introducing quantum-resistant signature schemes, encouraging users to move their assets to updated addresses, and implementing future Bitcoin Improvement Recommendations and protocol changes.
This type of transition will require broad consensus across the network to be implemented. For this very reason, Coinbase argues that the focus of the industry should be on preparation before the threat occurs.
