Quantum computing poses a risk to Bitcoin, but the Bitcoin community has already recognized the scale of the issue and is working on responses, according to Matthew Sigel, head of digital assets research at VanEck.
Speaking to CNBC on Friday, Sigel said progress may be slow because Bitcoin is decentralized, but he said the work is underway.
Developers are already preparing for a post-quantum future
The concern centers on a hypothetical future in which advances in quantum computing could allow machines to break Bitcoin’s cryptography. The report says some participants in the crypto sector, including Bitcoin developers, have already started preparing by testing quantum-resistant signatures on live sidechains.
“It’s a risk,” Sigel said. “But the community has recognized the scope of the issue. There’s a lot of talent that’s now come together with a framework of how to upgrade the system.”
Decentralized governance slows the upgrade process
Sigel said upgrades do not move quickly because there is no chief executive who can order developers to act immediately. “There’s a governance process — it takes more time, it’s a little bit messier, but there are technological paths for quantum resistance, and I think you’ll see more of that over the next couple of years,” he said.
The report also notes that quantum computers already exist, but they still make mistakes, and a machine capable of breaking Bitcoin’s cryptography does not currently exist. It adds that Bitcoin is currently the largest computer network in existence.
Coinbase, Blockstream and an industry consortium are working on solutions
The article says major companies in the sector are already developing responses, including Coinbase, the largest crypto exchange in the United States, and Bitcoin infrastructure firm Blockstream.
In July, Coinbase said it plans to deliver a post-quantum signing pipeline using secure enclaves and threshold cryptography.
Also in July, a Bitcoin Security Consortium was formed by BlackRock, Fidelity Digital Assets, Block, and others. The group donates funds and assigns engineers to open-source work supporting proposals including BIP-360, which aims to introduce a new transaction output type to reduce long-exposure quantum computing risks.
The article first appeared in Bitcoin Magazine and was written by Mathew Di Salvo.