Coinbase Readies Quantum-Resistant Bitcoin Custody Plan for $250B in Assets
Crypto exchange Coinbase is preparing for the post-quantum era of Bitcoin safety by building a fallback architecture to protect $250 billion in assets. The move comes as several platforms accelerate preparations amid growing sector fears about the risks posed by quantum computers.
The company's head of cryptography, Yehuda Lindell, explained that Coinbase aims to be prepared regardless of individual network activities, particularly concerning multi-party computation (MPC). He emphasized that retooling might differ across networks, making it essential for Coinbase to adapt to various signing schemes. This adaptable approach allows the exchange to support any signing scheme Bitcoin adopts.
Coinbase is accelerating its preparations due to the looming threat of quantum computers breaking digital assets' cryptography. Researchers have warned that a quantum computer could become powerful enough to do so by 2029, prompting Coinbase to explore alternative security measures. The company's efforts focus on protecting dormant assets, which are particularly vulnerable to bad-actor activity.
The traditional Bitcoin MPC might not be used across the board, as different networks have their own roadmaps for post-quantum safety mechanisms. For instance, Ethereum and XRP have detailed plans in place, but Bitcoin's approach is delayed due to community governance factors and controversy surrounding decade-old dormant assets.