Coinbase Global Inc.‘s (NASDAQ:COIN) advisory board on quantum computing released its first paper on Tuesday, detailing which parts of cryptocurrency security a future quantum machine could threaten and why the industry should begin upgrades now.
Coinbase Advocates Early Quantum Preparedness
The board, consisting of leading researchers from Stanford, UT Austin and the Ethereum (CRYPTO: ETH) Foundation, expressed “high confidence” that a quantum computer capable of breaking cryptography that secures digital assets will be built eventually, even if that capability doesn’t exist yet.
“The board’s view is straightforward: the time to start preparing is now, not when it’s urgent,” the Coinbase blog read.
Vulnerable Spots
The paper draws a line between network-level components and user-level key exposure, saying the biggest weak spot is the digital signatures used to prove ownership.
It added that Bitcoin's mining process, hashing, and the immutability of prior blocks are not “meaningfully threatened” by quantum attacks.
For Bitcoin, the board estimated about 6.9 million BTC sits in the higher-exposure category—wallets where key information is publicly visible on-chain
‘The Hard Part’
The board pointed to decades of work on quantum-safe cryptography, noting that the U.S. National Institute of Standards and Technology has already finalized multiple standards that can be used as building blocks.
“The hard part is rolling them out,” the board said. “Migrating millions of wallets across decentralized networks, where every user has to take action, is a coordination challenge unlike anything traditional finance faces.”
The board also recommended that critical decisions, such as the fate of wallets that do not upgrade, be made and communicated as early as possible.
The Big Debate
In earlier statements, Coinbase CEO Brian Armstrong emphasized that quantum computing is a “very solvable” issue and that it is engaging with major blockchains to transition to a post-quantum cryptography framework.
Ethereum (CRYPTO: ETH) creator Vitalik Buterin called for the swift deployment of quantum-resistant technology for the network, stressing its importance for long-term cryptographic safety.
Jameson Lopp, Chief Security Officer at self-custody platform firm Casa, stated in December that upgrading Bitcoin, which involves migrating funds to a quantum-resistant version, could take up to a decade.
Price Action: Coinbase shares were up 4.11% in pre-market trading after closing 7.41% lower at $195.95 during Tuesday’s regular trading session, according to Benzinga Pro.
The COIN stock shows weak price performance across short-, medium-, and long-term horizons, earning an average Value score in Benzinga's Edge Stock Rankings
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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