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

A newly released report, commissioned by Coinbase, has sounded the alarm on the potential threat of quantum computing to the cryptocurrency industry. The report, which was authored by an independent advisory board comprising prominent cryptographers and academics, emphasizes that although today's blockchains remain secure, the emergence of a fault-tolerant quantum computer capable of breaking widely used encryption is increasingly plausible, and preparation must begin now. The report highlights that major crypto ecosystems have already started developing strategies to mitigate this risk, with the Ethereum Foundation proposing new types of digital signatures and Solana experimenting with quantum-resistant wallet designs. While current quantum machines are far from powerful enough to crack the cryptography underpinning Bitcoin, Ethereum, and other networks, the authors caution against complacency, stressing that the timeline for the development of a large-scale, fault-tolerant quantum computer is uncertain but clearly on the horizon. The report recommends migrating to quantum-resistant cryptography by 2035, suggesting that waiting for the threat to become urgent is not a viable strategy, as transitions across blockchains, wallets, and exchanges could take years to execute safely. It also notes that some assets may be more vulnerable than others and that post-quantum digital signatures can be tens to hundreds of times larger than current ones, which could dramatically increase blockchain data costs and reduce throughput. The report outlines multiple transition strategies, including hybrid systems that combine existing cryptography with post-quantum updates, and recommends flexible approaches that avoid sacrificing current security or performance while enabling a rapid upgrade later.