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Bitcoin Community Recognizes Quantum Computing Risk: VanEck

Bitcoin Magazine

Bitcoin Community Recognizes Quantum Computing Risk: VanEck

Quantum computing is a risk to Bitcoin but the community recognizes the issue, according to asset manager VanEck’s Head of Digital Assets Research. 

Speaking to CNBC on Friday, Matthew Sigel said that while progress on addressing the issue may be slow because of the crypto network’s decentralized nature, the community was working on it. 

The crypto community has sounded the alarm about hypothetical advancements in quantum computers that could in the future be able to break Bitcoin’s cryptography. 

Some in the space — including Bitcoin developers — have started preparing for a post-quantum future by testing quantum-resistant signatures on live sidechains. 

“It’s a risk,” he 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.”

He added: “The upgrades don’t happen as fast because there’s no CEO who can tell the devs, ‘hey, do it now.’ 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.”

Quantum computers do exist but make mistakes and a machine that can break Bitcoin’s cryptography currently does not exist. Bitcoin currently is the biggest computer network in existence. 

Major companies in the space — including America’s biggest crypto exchange, Coinbase, and Bitcoin infrastructure firm, Blockstream — are already working on solutions. 

Back in July, Coinbase said it plans to deliver a post-quantum signing pipeline using secure enclaves and threshold cryptography. 

A Bitcoin Security Consortium — made up of BlackRock, Fidelity Digital Assets, Block, and others — formed in July and donates funds and dedicates engineers to open-source work supporting proposals like BIP-360, which aims to introduce a new transaction output type to reduce long-exposure quantum computing risks.

This post Bitcoin Community Recognizes Quantum Computing Risk: VanEck first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

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