Coinbase Prepares for Quantum Computing Threat with Post-Quantum Algorithm Upgrades

Coinbase has outlined its plan to survive the impact of quantum computing on cryptocurrency security. The exchange's Chief Information Security Officer, Jeff Lunglhofer, notes that while there is 'hype' and 'fear' surrounding the issue, it is a 'real' concern.

The company emphasizes that post-quantum algorithms already exist and are being standardized, but migrating millions of users to new addresses will be a significant challenge. Coinbase has begun building a post-quantum version of its proprietary key management system, CoreKMS, which protects 99.9% of the assets it custodies.

The company's plan is divided into three workstreams: upgrading its own vault and custody layer to support post-quantum signature algorithms; running a full inventory of cryptographic dependencies across the company; and working with other companies to develop quantum-resistant addresses for Bitcoin. However, Coinbase notes that even if it upgrades its vault, the coins themselves will still be vulnerable to attack.