Bitcoin Faces Quantum Threat: Can It Upgrade Security Before It's Too Late?

While not all aspects of bitcoin are vulnerable to quantum computers, the ownership of coins is at risk due to the type of math used to protect wallets. A quantum algorithm known as Shor's can break this math, and a recent paper by Google has shown that such an attack could be carried out with fewer resources than previously thought. Approximately 6.9 million bitcoin, including those owned by the cryptocurrency's pseudonymous creator Satoshi Nakamoto, are at risk due to exposed public keys. The 2021 Taproot upgrade has also expanded the problem by publishing the key protecting remaining bitcoin at an address after a transaction. To address this issue, bitcoin developers are considering proposals such as adding new quantum-safe address types or installing a detection system to trigger defensive action in case of a quantum attack. However, these proposals lack broad support, and the network's governance culture, which treats central authority as a failure mode, makes coordination and implementation of effective solutions challenging. In contrast, Ethereum has had a formal quantum-resistant program in place since 2018 and has made significant progress in migrating its security to new math that quantum computers cannot break. The clock is ticking for bitcoin to prevent a quantum threat, and it remains to be seen whether the network can coordinate a major security upgrade before the threat becomes a reality.