Nine cryptocurrency companies announced the formation of the Quantum Alliance on Thursday to develop common security standards for blockchain networks including Bitcoin and Ethereum, amid growing concern that future quantum computers could compromise wallet security.
Researchers warn that a sufficiently powerful quantum computer could reverse-engineer publicly visible wallet keys to uncover secret keys, potentially exposing an estimated 6.4 million bitcoin, or 30.2% of total supply, including approximately 1.1 million bitcoin attributed to Satoshi Nakamoto. However, no existing quantum computer currently possesses the capability to break this cryptography.
A central point of disagreement among experts involves timing. Richard Carback, chief technology officer of Postquant Labs, cited 2028 as a realistic date for a cryptographically relevant quantum computer. Bryn Bennett, chief revenue officer at The Vault, stated that while no one knows the precise date, estimates have been declining and the risk warrants preparation now.
The prospect of quantum threats has sparked debate over preventative measures. Some have proposed freezing vulnerable bitcoin holdings before quantum computers become a threat, while others argue for moving coins instead. Critics contend that freezing bitcoin contradicts the cryptocurrency's core promise that no entity can confiscate holdings.
Implementing quantum-resistant security would require replacing the digital signatures used to authorize transactions and would demand broad coordination among developers, miners, wallet providers, exchanges and users. Researchers warn that new signature schemes could increase blockchain space consumption, potentially raising transaction fees or reducing network capacity.
The Quantum Alliance, which includes Hacken, Postquant Labs, Quantus and the Midnight Foundation, plans to publish common security tests and guidance for migrating networks to quantum-resistant systems.
