Coinbase announced Thursday their preparation for a future where quantum computers may crack Bitcoin's current cryptography. America's biggest crypto exchange stated that while the threat is not imminent, complex challenges such as migrating millions of users and coordinating protocol upgrades across decentralized systems need to be addressed now. The publicly-listed company emphasized that a large-scale quantum computer capable of breaking current cryptography will eventually be built, making immediate preparation necessary rather than waiting until the situation becomes urgent.
Coinbase Deploys Independent Advisory Board and Automated Signing Pipeline
Coinbase's Independent Advisory Board on Quantum Computing and Blockchain, formed earlier this year, plans to deliver a post-quantum signing pipeline using secure enclaves and threshold cryptography. The exchange stated that its current key management system protects approximately 99.9% of the assets the company custodies. Within the next year, Coinbase will deliver an automated signing pipeline that will allow quantum-safe custody as soon as blockchains begin adopting post-quantum schemes. The company is bringing together Bitcoin core developers, cryptographers, and researchers to discuss post-quantum migration strategy, with plans to continue these meetings regularly.
Coinbase Joins Bitcoin Security Consortium with BlackRock and Fidelity
Coinbase is a founding member of the Bitcoin Security Consortium alongside BlackRock, Fidelity Digital Assets, Block, and others. The consortium donates funds and dedicates engineers to open-source work supporting proposals like BIP-360. Coinbase described preparing Bitcoin for a post-quantum world as one of the most consequential and complex challenges the protocol has ever faced.
Google Researchers Highlighted Quantum Computing Threat Last Year
Crypto companies and protocols have been planning for a hypothetical future where quantum computers can break top cryptography ever since Google researchers last year said that improvements in the computers may allow them to break the cryptography protecting major cryptocurrencies in just nine minutes. Quantum computers are still experimental and make mistakes. Some in the community have called the warnings overblown, while others have already started preparing for a post-quantum future by testing quantum-resistant signatures on live sidechains.
FAQ
What did Coinbase announce on Thursday regarding quantum computing?
Coinbase announced Thursday their preparation for a future where quantum computers may crack Bitcoin's current cryptography, including plans to deploy a post-quantum signing pipeline and coordinate with Bitcoin core developers on migration strategy.
When will Coinbase deliver its quantum-safe custody system?
Within the next year, Coinbase will deliver an automated signing pipeline that will allow quantum-safe custody as soon as blockchains begin adopting post-quantum schemes.
Who are the founding members of the Bitcoin Security Consortium?
The Bitcoin Security Consortium's founding members include Coinbase, BlackRock, Fidelity Digital Assets, Block, and others, with the consortium donating funds and dedicating engineers to open-source work supporting proposals like BIP-360.
