Bitcoin has entered a period in which preparations for quantum-resistant security must begin immediately, according to a new report from Coinbase’s independent advisory board of crypto experts.
summary
- The Coinbase Advisory Board says Bitcoin should start preparing for the transition to quantum-resistant cryptography now
- The report does not support freezing vulnerable Bitcoin, and leaves the decision up to the Bitcoin community.
- Researchers estimate that between 1.7 million and 5 million Bitcoins may face future quantum-related risks.
According to the report published By the Coinbase Advisory Board, the Bitcoin community should start developing and implementing the transition path to post-quantum crypto now rather than waiting for consensus on how to deal with weak legacy currencies.
The June report, prepared by a group that includes Ethereum Foundation researcher Justin Drake, notes that quantum computers do not currently threaten Bitcoin. However, the authors argue that uncertainty about future progress in quantum computing calls for early planning to avoid disruption later.
At the heart of the discussion is the growing debate over Bitcoin being held at addresses protected by existing ECDSA and Schnorr signatures. According to the report, some community members support setting a migration deadline after which these staking schemes will no longer be accepted, effectively freezing coins that have not migrated to quantum-resistant addresses.
Proponents of this approach argue that it will prevent future quantum attackers from controlling large amounts of Bitcoin and potentially affecting the market.
Others within the Bitcoin community take the opposite view. As described in the report, critics argue that making coins unspendable would amount to a confiscation of private property and would go against Bitcoin’s long-standing principles of immutability and user control over assets.
The report leaves the governance decision to Bitcoin users
Rather than endorsing either position, Coinbase’s advisory board said the question of whether vulnerable coins should be frozen, burned, or ultimately left untouched should be decided by the Bitcoin community itself.
Rather than support any of the competing proposals, the authors declined to recommend a preferred outcome for legacy Bitcoin holdings.
“We refrain from making any specific recommendation regarding the treatment of vulnerable coins.”
On the issue of governance, the report stated that the final outcome should emerge through the Bitcoin consensus process rather than being dictated by a small group of researchers.
“The decision must be made by the Bitcoin community.”
Many of the numbers cited in the report illustrate why this debate is becoming increasingly important. According to the advisory board, about 1.7 million bitcoins are held in legacy public key payment addresses whose public keys have already been exposed, making them vulnerable to future quantum attacks.
The report notes that many of these coins are believed to belong to missing wallets, including holdings commonly attributed to Bitcoin creator Satoshi Nakamoto.
Drawing on research from Project11, the report also suggests that up to 5 million Bitcoins may face exposure through address reuse, although a significant portion of that holding is believed to remain under the control of active users and institutions.
Technical proposals are already being explored
Along with the debate over legacy currencies, the report outlines several proposals designed to facilitate Bitcoin’s eventual transition to quantum-resistant security.
One proposal, known as an hourglass, would limit the number of bitcoins from vulnerable addresses that could be transferred in each block, reducing the risk of a sudden influx of redeemed coins entering circulation. Another proposal, BIP-361, would allow users to prove ownership through post-quantum cryptographic methods even after legacy signatures are retired.
The report also discusses post-quantum address commitments, or PACTs, a mechanism that would allow users to commit to future secure quantum addresses before the migration deadline without immediately moving funds onto the chain.
Although the Advisory Council stopped short of recommending any single solution, it reached two clear conclusions. According to the report, development of quantum-resistant migration tools should begin immediately, and Bitcoin users should receive clear information about potential risks and available migration paths long before quantum computing becomes a practical threat.
The post comes as Coinbase seeks to expand the reach of its platform, with the company recently… Outline of plans To integrate trading, lending, payments, derivatives, and AI-powered services In a unified financial ecosystem.
