Advances in quantum computing could threaten Bitcoin wallet security and undermine its economic and security model by allowing blocks to be mined far more efficiently, according to Coinbase’s head of investment research, David Duong. Quantum computing continues to be debated as a potential threat to the crypto industry, with theorized capabilities to break encryption and expose sensitive data. Duong said in a LinkedIn post that the core risks on ‘Q-day’ involve cryptographically relevant quantum computers running Shor’s and Grover’s algorithms to undermine Bitcoin’s cryptographic signature. Bitcoin’s security relies primarily on two pillars: the Elliptic Curve Digital Signature Algorithm (ECDSA) for transaction signatures and SHA-256 for the proof-of-work mining.
Quantum computers could potentially break the cryptographic security of private keys, enabling attackers to steal funds, and could mine blocks more efficiently, disrupting Bitcoin’s economic and security model. Attacks such as a 51% attack would require enormous computing power and could allow a single miner or a group to control more than half of Bitcoin’s mining power and manipulate the blockchain. Duong said that, for now, quantum mining remains a lower-priority concern due to scaling constraints, with signature migration as the central issue.
He added that quantum computing is not an imminent threat because today’s machines are far too small to break Bitcoin’s cryptography, but the open-source community should remain vigilant about post-quantum migration paths. Skeptics, such as Adam Back, argue the threat is decades away, while proponents like Charles Edwards of Capriole say the threat is more imminent and steps should be taken sooner. Discussions on Bitcoin’s quantum threat include timelines and potential solutions for 2025–2035.
Leave a Reply