What is Coinbase doing about quantum computing threats?

Coinbase has established an independent advisory board to evaluate the risks quantum computing may pose to blockchain cryptography and to provide guidance on potential threats.

How could quantum computers affect blockchain networks?

A cryptographically relevant quantum computer could compromise blockchain security, potentially allowing individuals with such technology to spend from any address.

When might quantum computers pose a practical threat to blockchains?

Organizations like NIST and IBM suggest that fears over cryptographically relevant quantum computers could become more practical by the mid-2030s.

Home / Technology / Coinbase Tackles Quantum Computing's Crypto Risk

Coinbase Tackles Quantum Computing's Crypto Risk

24 Jan

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Summary

Coinbase formed an advisory board for quantum computing threats.
Quantum computers could compromise blockchain cryptography.
Upgrading systems for quantum resistance is ongoing.

Coinbase Tackles Quantum Computing's Crypto Risk

The prospect of quantum computers breaking blockchain cryptography is becoming a tangible concern, prompting Coinbase to form an independent advisory board. This board will evaluate the risks and provide guidance on quantum computing's potential impact on blockchain networks.

Concerns stem from the fact that a cryptographically relevant quantum computer could render current blockchain security unworkable by allowing unauthorized spending from any address. While quantum-resistant cryptography offers a theoretical solution for both traditional finance and blockchain systems, the decentralized nature of many blockchains presents unique upgrade challenges.

Organizations like NIST and IBM project that the threat of cryptographically relevant quantum computers (CRQCs) could become practical by the mid-2030s. Many tech giants are already preparing for this future, often referred to as Q-Day. The unique structure of decentralized systems, such as Bitcoin, means that upgrades can be more complex and time-consuming compared to centralized entities.