Quantum Computing Threat to Crypto on the Horizon, Says Coinbase Advisory Board

The crypto industry has been cautioned to prepare for the potential threat of quantum computing, despite current blockchains remaining secure. A report by an independent advisory board, comprising prominent cryptographers and academics, stresses that a future fault-tolerant quantum computer could break widely used encryption, and the time to start preparing is now. Google researchers have estimated that a sufficiently advanced quantum computer could break Bitcoin's cryptography, prompting major crypto ecosystems to begin mapping out their responses. The Ethereum Foundation has proposed new digital signatures safe against quantum computers, while Solana and others are experimenting with quantum-resistant wallet designs. The report emphasizes that current quantum machines are not powerful enough to crack cryptography, but the authors caution against complacency, stating that a large-scale, fault-tolerant quantum computer will eventually be built. The timeline is uncertain, but the urgency is reflected in guidance from the U.S. National Institute of Standards and Technology, which recommends migrating to quantum-resistant cryptography by 2035. The report suggests that waiting for it to be urgent is not a good idea, as transitions across blockchains, wallets, and exchanges could take years to execute safely. Quantum-resistant cryptography already exists, but it's not an easy swap, and the report outlines multiple transition strategies, including hybrid systems that combine existing cryptography with post-quantum updates. The authors recommend flexible approaches that avoid sacrificing current security or performance while enabling a rapid upgrade later.