Vulnerability to Quantum Attacks: Blockchain Governance Moves Too Slowly

The emergence of quantum computing poses significant risks to the crypto industry, and the slow pace of governance processes may render blockchains vulnerable to attack. According to Colton Dillion, co-founder of Quip Network, which provides quantum-resistant storage solutions for digital assets, the threat of quantum computing is very real. While the technology is still in its early stages, companies such as Google and Microsoft are actively researching and developing it, with the goal of achieving a substantial increase in calculation speed. This could potentially make it easier to crack encryption, such as that used to protect blockchains. When quantum computing becomes available, attackers are unlikely to announce their presence immediately. Dillion warns that the real quantum attack will be subtle, quiet, and gradual, and may resemble large-scale fund movements by major players. By the time the attack is detected, it may be too late. Dillion's scenario involves a quantum-powered double-spend attack, which could reduce the mining power required for a traditional 51% attack to around 26%. This could compromise the 10,000 largest wallets, allowing attackers to rewind the chain, liquidate those wallets, and then double-spend all transactions, resulting in a catastrophic outcome. The industry is working to find a solution, with proposals such as QRAMP, which mandates a hard-fork migration to quantum-secure addresses, and BTQ's proposal to replace the proof-of-work consensus system with a quantum-native consensus. However, these proposals must gain community approval, which can be a lengthy and cautious process due to the political nature of blockchain governance. Dillion argues that this process leaves crypto exposed to quantum threats, which will evolve much faster than the protocols can respond. Quip Network's quantum-proof vaults aim to address this issue by allowing immediate user-level adoption without requiring protocol upgrades, providing blockchain-agnostic security through hybrid cryptography. This approach enables large holders to secure their assets while waiting for the blockchain governance process to catch up. Dillion emphasizes that the BIP and EIP processes are suitable for governance but inadequate for rapid threat response, and that attackers will not wait for community consensus when quantum computing becomes available.